Community Investment Enterprise Fund

Small businesses play a vital role in local communities, creating jobs and driving economic activity. Yet many are unable to access mainstream finance.

Socially motivated lenders, such as Community Development Finance Institutions (CDFIs), help to fill this gap. However, CDFIs themselves face barriers to achieving long-term sustainability and securing sufficient capital to meet demand at scale.

We established the first Community Investment Enterprise Fund (CIEF) in 2018 to provide CDFIs with the capital they need to meet demand. The fund also aims to build greater understanding of the financial and social impact of CDFI lending, helping to attract additional investors into the sector.

In April 2020, as part of Better Society Capital’s response to the coronavirus pandemic, the Community Enterprise Investment Facility was adapted so it could access the Government-backed Coronavirus Business Interruption Loan Scheme. This enabled CDFIs to offer smaller emergency loans with no fees and interest for 12 months to underserved businesses affected by the pandemic.

The first phase of the fund saw the deployment of £72 million by four CDFIs to meet the needs of more than 960 businesses, with co-investment from Triodos Bank and Unity Trust Bank.

In 2024, the second phase of the fund begun as a £62 million investment initiative to help 800 small businesses across England and Wales access finance to support local jobs and economic activity. It has received co-investment from Lloyds Bank, the first mainstream lender to support the CDFI sector, underlining its commitment to investing in sustainable business and regional development including within disadvantaged areas of the UK. In 2025, a further £10 million facility co-funded by Triodos Bank has been made available to SWIG Finance to support more micro and small businesses (MSMEs) in the South and West Country. The fund continues to be managed by Social Investment Scotland.