Purple Shoots is able to accept loans from individuals or businesses and can pay interest on these loans.
In addition, lenders could be eligible for 25% tax relief over 5 years under the Community Investment Tax Relief Scheme. This scheme is intended to stimulate private investment in disadvantaged communities by providing a tax incentive to individuals and companies who invest in Purple Shoots (or other accredited CDFIs) for on-lending.
This tax relief scheme is available to both individuals and companies (subject to certain conditions) and is worth up to 25% of the value of the investment over 5 years starting in the year the investment is made.
The HMRC website also has guidance for investors who may be considering investing under the scheme and a helpsheet about claiming the relief. The scheme is jointly administered by HMRC and the Department of Business Innovation and Skills.
Please ensure that professional investment advice has been obtained before investing.