Social investment is the use of different forms of finance to help community groups, charities and social enterprises (including new organisations) achieve a social purpose. Whether you address social needs, strengthen communities, improve people’s life chances, enhance culture or protect the environment – if your business trades (or aims to trade) for the common good, or is looking to create community assets, social investment could help you to grow your organisation. Through GM Social Investment there are three different funds available that could be just what you need to develop your organisation.
Social investment is not suitable for everyone, and it should be considered alongside other options. It’s important to look at the range of finance options available to your charity or social enterprise before deciding.
Social investment may include an element of grant funding but normally it will require repayment on an agreed basis.
Social investment can help you finance your own initiatives that will kick start growth. This could include:
- Community owned housing
- Community sports facilities
- Increasing production
- Growing your customer base
- Improving marketing
- Purchase of equipment
- Hiring new staff
- Developing new products
Current funds available through GM Social Investment:
Access to Growth
Do you have a great idea for a business with social impact?
Is your organisation already delivering social impact and you want to grow what you're doing or expand in a new direction?
Access to Growth offers affordable and accessible social investment aimed at small and very small social enterprises and charities that trade, including new organisations.
This blended finance (mixture of grants and loans) is designed for organisations who have the potential to add more value to their local communities and grow their social impact. Access to Growth is looking to invest between £10,000 and £50,000 of flexible, unsecured finance in each suitable applicant, to be repaid over one to five years. There is an arrangement fee of 1%, the interest rate charged is 6.6% flat rate and there are no early repayment penalties. Each investment will combine grants with loans into a simple product to help organisations grow their great ideas.
Whether you address social needs, strengthen communities, improve people’s life chances, enhance culture or protect the environment – if your business trades for the common good, this opportunity is for you.
Resonance Community Developers Fund
Do you want to develop community led housing and/or sports facilities in Greater Manchester?
Resonance Community Developers Fund invests in projects looking to develop community led and owned assets for both affordable/social housing and/or sports facilities in Greater Manchester. The Fund aims to invest in substantial projects, normally in excess of £1 million across Greater Manchester.
GMCVO, as the local delivery partner, will provide support and connect community groups with local partners to help deliver the projects. Resonance are an experienced FCA Fund Manager with over 17 years' experience of investing in communities and social enterprises across the UK. Their Fund can provide finance as a project evolves and is available for pre-development feasibility, land acquisition and development finance, to construct homes or sports facilities.
Emergency Investment Fund
Has your company or organisation been negatively impacted by the Covid-19 crisis and been unable to access suitable or sufficient investment from existing support schemes such as the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) or SIB’s Resilience and Recovery Loan Fund?
Whether you address social needs, strengthen communities, improve people’s life chances, enhance culture or protect the environment – this opportunity is for you.
If you are a social enterprise, a charity or a community business then you can apply for a loan of between £50,000 to £250,000 for a 5-year term to support you through the crisis.
The Emergency Investment loans remain interest and capital free either until your turnover returns to pre Covid-19 levels, or a maximum of two years – whichever is the shorter. Repayments are then made over a maximum period of 3 years and interest charged at 3% in year 1, 6% in year 2 and 9% in year 3 (total maximum term 5 years).
The funding has been made available through GMCVO in partnership with Access the Foundation for Social Investment, funded from dormant accounts, and Greater Manchester Combined Authority (GMCA). The application window has been extended and will close on 16 May 2021.
To be eligible your company or organisation needs to have been running successfully prior to the Covid-19 crisis, and you must have a clear plan as to how you will recover from the current situation. You will also need to explain why the existing government backed funding options are not suitable or sufficient for your purposes.
For more information click here
| Attachment | Size |
|---|---|
 Access to Growth flyer.pdf | 940.26 KB |
| Resonance Community Developers Fund Flyer.pdf | 176.77 KB |