A fund designed to help communities take ownership of local assets and services has received a £1m boost.
The investment from Big Society Capital means the Community Shares Underwriting Fund (CSUF) will be able to expand work that has already seen 200 projects raise £40m of investment since 2009.
CSUF will now have £2m to underwrite projects where the target amount for the share offer is not reached. Big Society Capital, the social investment bank set up by the Government in 2012, said it will invest a further £1m ‘if demand for the fund exceeds expectations in the next 12 months’.
Examples of projects already supported include Osney Lock Hydroelectric scheme in Oxfordshire, which received £150,000 in top up funding from CSUF after raising £550,000 through community shares. The initiative aims to reduce carbon emissions and generate income for local environmental projects.
Simon Chisholm, investment director of social impact investment firm Resonance, which manages CSUF, said: ‘Community Share Offers are empowering local community groups around the country to get beneficial projects off the ground, and re-connecting smaller investors with tangible investments in their own communities.
‘We’re delighted that the next round of this fund will be able to provide even more support to these initiatives, and encourage communities undertaking a share offer to get in touch.’
Nick O’Donohoe, chief executive of Big Society Capital, said: ‘Around the UK there is an increasing demand from local communities to work together to secure important community assets. Many of the larger scale projects may face hurdles and miss their financing targets, this fund covers 50% of that funding gap, allowing them to get off the drawing board faster.’
