Community Builders Fund

The challenge

The fund invests in social and affordable rented and shared ownership housing in the UK via an open-ended structure. With an embedded impact framework and a focus on sustainable investment, the fund is targeting areas with the greatest need to provide high quality homes.

Our approach

When the pandemic first hit, Better Society Capital worked with Social Investment Business to support the creation of the £25 million Resilience and Recovery Loan Fund which helped nearly 80 social sector organisations to survive and maintain their services during tough times. Our investment in the Community Builders Fund (CBF) builds on this success to ensure these organisations have the financing they need, to not just sustain but grow. We believe the CBF can provide a model for the sustainable provision of capital to the sector, and we have structured our investment to encourage other investors to come in alongside us.

The fund

The Community Builders Fund, managed by Social Investment Business in partnership with several other social lenders, delivers loans backed by the Government’s Recovery Loan Scheme for social sector organisations. Its wide network of partners ensures the fund can reach a diverse set of borrowers, while the Government guarantee helps keep costs low for borrowers and attracts investors.

To reach organisations that have historically been underinvested in, such as those led by members of underrepresented groups, SIB as also partnered with inclusion experts like the Ubele Initiative and Create Equity, supported by a grant from the Access Foundation.