Two North East England-based charities have experienced what they describe as “remarkable growth” when they received backing from a social investor after facing barriers from traditional lenders.
The social investor, Key Fund, provided funding to two charities serving marginalised groups: Veterans at Ease – which provides therapy for serving personnel, veterans and their families – and Africawad, which collects and recycles clothes to export to West Africa to fund schoolgirls’ education.
Due to the funding received, Veterans at Ease was able to up-scale its operations from regional to national, growing from one charity shop to eight. Africawad’s funds were boosted by the £4,600 grant and £15,400 loan it received from Key Fund and it was able to purchase a van to pick up more clothes.
‘Many marginalised groups struggle to access finance they need’
Key Fund specialises in investing in social enterprises and organisations making a measurable difference in their communities across the north of England; it has supported Veterans at Ease multiple times since 2018.
Reacting to the funding, Christina Murrell, managing director at Veterans at Ease, said: “It was a loan against the enterprise – meaning it didn’t risk the charity’s future if things went wrong.
“Since then, we’ve expanded nationally and now support almost 500 veterans.
“The demand for our work is incredibly strong – every day we receive enquiries and referrals from those in urgent need.”
Key Fund’s CEO, Matt Smith, added: “Key Fund has a proud history of backing underserved communities, but we know that many marginalised groups have historically struggled to access the finance they need.
“We’re committed to changing that.”
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