The Growth Fund is a partnership between The National Lottery Community Fund and Big Society Capital, delivered by Access through range of social investors. It makes £50 million available to support charities and social enterprises to grow and create social impact in their communities. The Growth Fund uses a combination of grant funding, made possible thanks to National Lottery players, and loan finance from Big Society Capital and other co-investors, to address specific gaps in the social investment market.
This unsecured lending is suited to new and early-stage enterprises who are seeking finance to support growth or become more robust; typical investments are around £50k. There is up to a 1% arrangement fee with each investment.
Eligibility-
1. Social Enterprises looking to develop or grow trading activity
2. Based in Midlands or North of England and focused here
3. Clear social mission - benevolent, charitable, or philanthropic
4. Less than 5yrs old, or substantial new activity less than 5yrs old
5. Less than 250 employees, t/o less than E50m, net worth less than E43m
6. Need grant as unable to use 100% debt finance, significant business development costs, or offsetting social impact costs
7. Need to uphold responsible business principles
The Fund offer:
Up to £150k - Blended finance (loans with up to 20% grant)
- Average grant equal to 20% of loan, but up to 50%
- Average deal of £48k (£40k loan & £8k grant)
- Maximum term of 5 years, but average of 3 years
- 6.5% flat interest rate
- No early repayment penalties
The Key Fund will also shortly be launching a new Flexible Finance Fund, for established community and social enterprises, to complement our existing blended funds.
To check your eligibility and find out more please contact The Key Fund directly.
