A Community Development Finance Association scheme to increase access to finance for social enterprises received £12m in new funding yesterday.

The government has provided £6m from the fourth round of the Regional Growth Fund programme to a project run by the Community Development Finance Association (CDFA) and the figure has been matched by the Unity Trust Bank bringing the total amount now available through CDFA’s scheme to £72m.

CDFA’s programme provides loans to small, micro and social enterprises. The programme was initially awarded £30m from the first round of the Regional Growth Fund in 2011, as well as £30m from the Co-operative Bank and Unity Trust Bank.

Deputy Prime Minister, Nick Clegg yesterday announced the 102 companies and projects that had been awarded a share of £506m from the fourth round of the Regional Growth Fund which aims to stimulate economic growth and create jobs. There were 309 applications to the round-four pot.

Ben Hughes chief executive of CDFA, said: “Today’s announcement shows that government recognises the impact we’re having. The new funds are very welcome, but this is a drop in the ocean compared to the demand for finance that we know is out there.”

Earlier this year CDFA published research which identified a £1.3bn funding gap between the amount of finance avaialble and the demand that exists.