A £20m fund to make loans and equity investments for charities and social enterprises has been launched by Social and Sustainable Capital.
The Community Investment Fund will provide up to £1m to social enterprises that improve the lives of local people, create new jobs and develop the local economy. The fund will report on both the financial and social performance of its investments, to show investors it is possible to make a positive social impact alongside a financial return.
The Social Investment Business and Big Society Capital have both committed £10m to the fund, with initial contributions of £3m each.
Social and Sustainable Capital also announced a strategic partnership with the Social Investment Business, to attract new finance for charities and social enterprises from the private sector.
Sir Stephen Bubb, chair of the Social Investment Business, said: ‘As one of the country's leading social investors, with 10 years’ experience in the field, we know there is huge demand in charities and social enterprises for simple lending, secured and unsecured, but precious little supply of either. That needs to end if we are to grow our third sector.
‘This new partnership with Social and Sustainable Capital will enable us to access new funds from the private sector. Their experience and credibility with financial institutions is a perfect fit with our track record of delivering affordable finance to charities and social enterprises.’
Nick O’Donohoe, chief executive of Big Society Capital, said: ‘Our £10m pound investment recognises the potential impact that this fund and partnership could have. Firstly, the Community Investment Fund will drive funding right to where it’s needed, empowering communities to both own and scale up positive impact for local beneficiary groups.
‘Secondly, this strategic partnership is an important development for social investment, combining the promise and rigour of Social and Sustainable Capital with the extensive market experience of the Social Investment Business.’
