Last week saw the relaunch of Key Fund – a social investment intermediary originally based in Yorkshire – offering loans and grant/loan packages to help community and social enterprises start-up, grow and/or become more sustainable.
Key Fund was established in 1999 to help address social issues created by the demise of major industries in communities across South Yorkshire. It now provides investment support to community and social enterprises operating across the North and Midlands.
We were delighted to join Key Fund as they opened their new offices in Sheffield.
Matt Smith, CEO of Key Fund at their relaunch last Friday.
Big Society Capital is lending £4.5 million directly to Key Fund to support its ongoing investment activities as a valuable regional social investment intermediary. We’ve been working closely in partnership with Key Fund to put a loan in place to enable it to increase its deployment of unsecured loans of up to £150,000 to those charities and social enterprises looking to further their social impact.
We’re delighted that more organisations that are successful and investable will be able to secure finance, many of whom have struggled to secure finance from mainstream lenders.
The £4.5 million is split between a £2 million term loan to support Key fund’s general investment activities, and a £2.5 million revolving credit facility that will play a strategic role providing both bridging finance between contracts and/or match investment to specific programmatic funds.
The organisation now has £10m of new funds to invest in over 300 more community and social enterprises. We hope this money will help further support the growth of social businesses in the Northern and Midland regions.