£10m of funding for social enterprises announced

28 Oct 2016 News

Key Fund's website

Key Fund has today announced £10m worth of funding available for community and social enterprises across the North and Midlands.

The North of England’s specialist investor in community and social enterprises says that it aims to invest in 100 enterprises per year, for the next three years. 

The £10m includes a £5.5m Northern Impact Fund, supported by Access – the Foundation for Social Investment, with funding from Big Society Capital and the Big Lottery Fund, which offers blended loan and grant investments up to £150,000. 

Key Fund have also secured £4.5m of new finance direct from Big Society Capital, to support general investment activity.

The Northern Impact Fund is open to applications from social enterprises operating in the Midlands, North East, North West and Yorkshire and the Humber.

Matt Smith, chief executive of the Key Fund, said: “With this fund we’re offering finance of up to £150,000, but typical investments will be around £50,000, with up to 20 per cent of the amount available as grant. The Key Fund was one of the early pioneers in this space, and our original model was based on a grant and loan mix, so we’re really excited to be going back to that original model. 

“It’s long been our belief that grants can play a very important role in helping new and smaller social enterprise become more robust.”

The Northern Impact Fund has received support from the Growth Fund, an initiative of Access – the Foundation for Social Investment.

Key Fund announced the new funding at its offices in Sheffield this morning, while also releasing its Social Impact Report 2015/16.

The report said that the last year saw Key Fund invest a total of £10m in 201 enterprises, which received funds ranging from £5,000 to £300,000. The investments created 37 new businesses, created 293 jobs and safeguarded 188 jobs.

Smith said: “Our Social Impact Report demonstrates what a significant impact the sector has. There are inspiring businesses and individuals, who are not only generating jobs in some of the most disadvantaged communities, but are also tackling deep-rooted social issues. We’re now looking for 300 more community and social enterprises to come forward over the next three years, whether they are start-ups or existing enterprises looking to expand, diversify or grow.”

More infomation on the funding and how to apply can be found on Key Fund's website.

 

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