Smaller loans for charities and social enterprises, delivered through a range of social investors.
The Growth Fund is designed to provide the finance that charities and social enterprises need for growth or diversifying their business models. The fund is aimed at organisations which are unlikely to have taken on social investment before.
The finance will be small, flexible, unsecured and affordable and will be available in simple products. The finance will enable organisations to create more social impact.
Typically, this type of finance has not been readily available. This is often because the social investor considers such finance to be high risk and therefore charities and social enterprises find it unaffordable. Or the finance needs to be of a minimum size to cover deal costs which is too big for an organisation’s stage of development.
This ‘gap’ represents lost opportunities for organisations to change more lives or deliver more services for individuals and communities.