What is Social Investment? Why is it needed?

What is Social Investment? Why is it needed?

The Grant Dilemma 120 100 80 60 40 20 0 1 2 3 4 5 Grant Income 6 7 Overheads 8 9 10

Social investment is the use of repayable finance (with Key Fund often with a grant element added) invested into a social organisation to help it achieve its purpose and increase its impact on society. This type of finance can help provide working capital, enable organisations to buy new assets, and grow their business overall.

Key Fund a Social Investor operating across the whole of the North of England and the Midlands.

How we do this We provide finance – flexible loans and grant/loan packages to help community and social enterprises to start-up, become sustainable, or grow. Up to 300,000. Often with some grant element. Most facilities are totally unsecured. It’s not just about the money. It’s also about providing the right kind of support to help our investees have the best possible chance of success.

Who we invest in Community, Social Enterprises and Cultural Organisations who have traditionally been excluded; turned down by mainstream banks and building societies. Particularly those in disadvantaged areas. Our investees have one crucial thing in common – the ambition to build and strengthen communities.

From community-run pubs to pools, libraries and theatres to local cooperatives, we’ve been there funding all of these. We can fund assets, working capital, growth and development.

Pros and Cons Pros Cons Flexible by value & purpose Interest and Fees Choice Security - occasionally Fairly quick Due diligence Blended funds Monitoring Specialisms Relationship

Funds Range Summary 5000 to 300000 1 month to 15 year terms 3.5% fixed & flat to 6.5% 1-2% arrangement fee Up to 33% grant Bank refusal required

What do you need to provide to us? Application form ( www.thekeyfund.co.uk/apply) Cashflow forecast Business Plan What if I can’t provide these? Reach Fund? Bank statements Board bio Identification

What do you need to provide to us? Application form ( www.thekeyfund.co.uk/apply) Cashflow forecast Business Plan What if I can’t provide these? Reach Fund? Bank statements Board bio Identification

What do you need to provide to us? Application form ( www.thekeyfund.co.uk/apply) Cashflow forecast Business Plan What if I can’t provide these? Reach Fund? Bank statements Board bio Identification

Good Finance Objectives 1. Improve knowledge on social investment, what it is, what it can be used for and the journey & process it requires 2. Enable organisations to make informed decisions, based on their needs and situation, not on embedded attitudes 3. Help connect organisations to the right investors to talk to based on shared values

https://www.goodfinance.org.uk

What is the Reach Fund? Part of capacity building support provided by Access About helping organisations looking to raise investment but need help providing information needed by investors Referral from Access Point (Keu Fund) needed to apply

Grants Typically up to 15,000 Can be used for internal & external costs, BUT What is funded is determined by what the investor needs Currently nearly 30 approved Access Points

Get in touch Visit www.reachfund.org.uk Call on 020 3096 7900

For more information contact: Adrian Bean (07515063133) [email protected] or visit;