Investment

The Investment element of the Fund is for organisations that are ready to grow and expand their role within the community and are on the way towards financial self-reliance through the generation of unrestricted and/or earned income.

Loans are a fundamental part of this element and bringing organisations to the point where they are ready to take on a loan is the ultimate aim of the Fund. However, loans will never be given to those who are not ready and the repayment schedule will always be tailored to each organisation's individual needs. However, the largest part of evert investment will always be a loan.

Finance available

A combination of mainly loans, but also some grant money, of between £50,000 and £2 million over a term of 6 months - 10 years. The interest rate for loans is fixed at 5% for the first 3 years. Up to 2 years capital repayment holidays will be considered and the repayment rate will be negotiated based on your project. Depending on the project, quasi-equity investments or performance related loans may also be available.

Capital grants are available as a small part of a loan package. There are also revenue grants of up to £40,000 for capacity building, £3,000 for measuring social return and £30,000 for those working with housing associations.

Investments can be used for:

  • Property and asset investment: for property purchase, development or refurbishment
  • Business growth investment: support for the ongoing activities of the organisation whilst they build new income streams
  • Working capital: loans to support cashflow and immediate additional costs

Support available

Each organisation will receive support from the Communitybuilders business support team or through business development grants of up to 20 days of support for use with external consultants of professional advisors. This could cover a wide range of needs, for example:

  • Feasibility studies
  • Lease negotiation
  • Developing successful planning applications
  • Business development
  • Advice on winning and delivering contracts
  • Intensive support

Note that we have a limited supply of support and finance available. The organisations selected will be the ones who best show their commitment to becoming sustainable and self financing.

Find out if you might be eligible

Partnerships

We are not able to support more than one anchor in a defined area. However, we would welcome applications from two anchors in a local area that wished to explore working more closely together and would be willing to commit additional feasibility funds to support that collaboration.

Additionally, partnership or hub and spoke arrangements are eligible provided that there is a third sector lead partner, the partners meet the eligibility criteria between them and more than 50% of the local anchor services are provided by organisations that have been in existence for at least a year.

Local Mediation Service

Where appropriate, The Social Investment Business will offer its Local Mediation Service which is aimed at resolving barriers to investment between potential investees and local government. Upon recommendation by the Supporter a trained mediator will facilitate a session with the parties involved.