Growing enterprises and building resilience to improve people’s lives
Social enterprises, charities and small businesses play an important role in their communities. They support vulnerable people, create jobs and contribute to the local economy. Many viable and sustainable enterprises struggle to access affordable finance. This is because they lack security, a track record, and traditional lenders perceive them to be high risk.
The role of social impact investment
Social impact investment can help support a wide range of organisations to access affordable finance in some of the most disadvantaged communities. From small loans to charity bonds, social lending can help enterprises grow their trading income, provide working capital, and increase resilience.
We’ve invested alongside others to support both experienced and new fund managers, and social banks, all of whom work hard to understand the organisations they support. We’ve used a range of tools including repayable investment, guarantees and subsidies such as tax relief and catalytic capital. And we have worked with trusted partners to provide a blend of grant and repayable capital, significantly increasing the number of organisations we reach. As a result, we are supporting many organisations in some of the most disadvantaged communities in the country.
- 4000+ loans to social enterprises and charities across the social lending market – as at 31 Dec 2020
- £1bn increase in lending by social banks since 2012
- £337m size of the charity bond market vs over £5.4m in 2012
More on social lending
How social investment impacts an organisation: Improving their financial resilience and growing their social impact
What role have CDFIs played during the pandemic? Impact evidence from the Community Investment Enterprise Facility