The Key Fund has announced a new £5.5 million fund that aims to increase the number of small/early stage voluntary, community and social enterprise organisations accessing social investment to grow both their impact as well as trading activity.
The Northern Impact Fund will offer investments that combine loans with a grant element of up to 20% of the loan amount. Investments will range from £5,000 to £150,000. There is no arrangement fee and the interest rate is 6.5%. “The fund is largely targeted at working capital and we should try to avoid funding asset purchase if at all possible.”
- Voluntary, community and social enterprise organisations with social aims/objectives as well as blocks on private profit
- New organisations less than five years old
- Organisations engaging in substantial new activity
The whole of the North and Midlands including Yorkshire is eligible.
- Private businesses/those without limits on private profit distribution
- Organisations without social aims and objectives
- Mature organisations
- Organisations that have substantial experience of using debt finance