We want all purpose-driven organisations to be able to access affordable, flexible finance – particularly those who may not otherwise be able to access mainstream lending – so they can become stronger and more resilient. That’s why our fund is:
- Continuously open for applications
- Cause universal
- Available to social enterprises and charities across the UK (including those that provide services overseas)
Most of our social investments are unsecured loans. This is often an attractive option for organisations that struggle to access finance from banks due to their lack of assets, such as property, to be used as collateral. In some circumstances, we will offer blended finance packages (part loan/part grant), which can help smaller organisations facing additional pressures.
We offer between £50,000 and £1 million, with a 5.5%* fixed interest rate that won’t change during the lifetime of the facility. Additional commitment and legal fees apply.
Our flexible investment types include:
- Unsecured loans
- Blended finance (part loan/part grant)
- Standby facilities (a pre-approved loan to draw on if it's needed)
- Bonds **
Our unrestricted investment can fund:
- Working capital/cashflow management
- Delivering products and/or services to new customers
- Building organisational resilience such as investing in improving impact measurement and reporting, designing and developing products or services, systems and processes, sales and marketing, hiring new staff, and purchasing assets
Typically, our loans are between 3-5 years, but we can increase that up to 10 years under certain circumstances.
*Investments outside of a typical 3-5 year structure and/or without a regular payment schedule may attract a higher interest rate which will be determined on a case by case basis.
**If you are raising a bond to drive your social impact and fit our criteria we would be interested in hearing from you.