COVID-19: Information for social investors

The significant news this week was the Government announcement of the release of an additional £71 million of dormant assets, alongside £79 million recently announced.

Overall, smaller organisations in our loan portfolio have been most affected by the impact of COVID-19, but there have been implications for all, including infrastructure investments.

Seven weeks since the UK lockdown began, we are getting a clearer picture of how charities and social enterprises are adapting to the crisis and the funding needs they will have.

Across our portfolio we see organisations facing great challenges in this crisis, but also hear incredible stories of how many are adapting to continue to deliver on their mission.

As a social investment sector, we have aimed to work collectively and be clear where repayable investment can help alongside other support, and where it cannot.

At its heart the social investment sector aims to tackle inequality – by backing sustainable enterprises that support the most disadvantaged. We are learning that pandemics have always exacerbated inequality – and this one is no different.

Many organisations in our portfolio are racing to adjust their service delivery for the new environment while facing significant uncertainty on their revenue and future.

For the charities and social enterprises we support, it has been another really tough week. Many are racing to protect their staff and preserve their business

It has been heartening to see how our colleagues, partners and fellow investors have come together in challenging circumstances around a shared mission.

The current Coronavirus pandemic is not only presenting significant risks to people’s health, but may also threaten the financial sustainability of many social enterprises, charities and the vital services they provide.