The challenge
There is a growing demand for affordable unsecured loans of under £150,000 from social enterprises and charities, but the unknown risk profile and relatively high cost of delivering this type of finance mean it is in short supply.
Our approach
Working together with the National Lottery Community Fund and Access – the Foundation for Social Investment, the Growth Fund was established to address this gap for small loans and help social enterprises and charities become more resilient and self-reliant.
The Fund
The Fund programme has invested in 16 loan funds which provide finance for social enterprises and charities to grow or diversify their business models. Finance comes in the form of small, flexible, unsecured loans, in some cases combined with grants, up to a total of £150,000.
By blending loans and grants, both for the fund manager and for the charity or social enterprise, it is possible to make finance available where previously risks and costs were too high.
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Fund size
£48.5 million -
Big Society Capital commitment
£26.3 million
Key information
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Geography
UK wide -
Investment type
Enterprise debt -
Fund manager
Access - the Foundation for Social Investment -
Investment status
Current -
Investment date
2016 -
Term
10 years
Impact
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Number of investments into social enterprises and charities to date
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Average investment size
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Median turnover of recipients
Sustainable development goals
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3: Good Health and Well-being Ensure healthy lives and promote well-being for all at all ages -
4: Quality Education Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all -
7: Affordable and Clean Energy Ensure access to affordable, reliable, sustainable and modern energy for all -
8: Decent Work and Economic Growth Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all -
11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable
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Investors and partners