Community Investment Enterprise Facility

Providing debt finance to Community Development Finance Institutions (CDFIs).

CIEF
Social Investment Scotland.png

The challenge

Many small businesses across the UK are unable to access mainstream finance. While they can access finance from socially motivated lenders such as Community Development Finance Institutions (CDFIs), the CDFIs themselves face barriers to achieving long-term sustainability and securing significant capital at scale to meet the demand of small businesses.

Our approach

We established the Community Investment Enterprise Facility to provide CDFIs with the capital they need to meet demand, to help increase understanding of the financial and social impact of CDFI lending, and to attract other mission-driven investors to help achieve long-term stability

The facility

This Facility will provide capital for up to five Community Development Finance Institutions (CDFIs) to help them lend to small businesses operating in disadvantaged areas.

Small businesses are essential in disadvantaged communities, providing both jobs and economic activity. As many are unable to access mainstream finance to grow their business, CDFIs lending plays an important role.

A long-term financial, social and economic evaluation of the facility will be carried out by the Centre for Regional Economic and Social Research at Sheffield Hallam.

  • Fund size

    £60 million
  • Big Society Capital commitment

    £30 million

Key information

  • Geography

    UK wide
  • Investment type

    Enterprise debt
  • Fund manager

    Social Investment Scotland
  • Investment status

    Current
  • Investment date

    2018
  • Term

    8.5 years

Impact

  • 3

    Number of CDFIs supported

  • 111

    Number of small businesses supported

  • £15m

    Total capital raised alongside into CDFIs

Sustainable development goals

  • 11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable