The Growth Fund
Blended grant and loan fund providing small, affordable, unsecured loans for social enterprises and charities.
The challenge
There is a growing demand for affordable unsecured loans of under £150,000 from social enterprises and charities, but the unknown risk profile and relatively high cost of delivering this type of finance mean it is in short supply.
Our approach
Working together with the National Lottery Community Fund and Access – the Foundation for Social Investment, the Growth Fund was established to address this gap for small loans and help social enterprises and charities become more resilient and self-reliant.
The Fund
The Growth Fund programme has invested in 16 loan funds which provide finance for social enterprises and charities to grow or diversify their business models. Finance comes in the form of small, flexible, unsecured loans, in some cases combined with grants, up to a total of £150,000.
By blending loans and grants, both for the fund manager and for the charity or social enterprise, it is possible to make finance available where previously risks and costs were too high.
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Fund size
£51.5 million
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Better Society Capital commitment
£27.5 million
