1. Access – The Foundation for Social Investment A Bridge to Social Investment event The Growth Fund and The Reach Fund 19 May Seb Elsworth, Access Chief Executive

2. What we will be covering
How are charities and social enterprises really using social investment to help?
Understanding the gaps in the social investment market and how Access is helping to bridge them
Offering affordable small-scale loans to charities without previous experience in social investment through Access’s £45 million Growth Fund
Supporting charities to manage repayable finance successfully through capacity building and Access’s programmes
Tools and resources which are there to help

3. What is social investment?
Social investment is repayable money to help charities and social enterprises to create even more impact through their work.

4. To build innovation, growth and sustainability
Another tool
FINANCIAL TOOLKIT
Social
Investment
Trading
Donations
Bank
Finance
Contracts/ Payment
By Results
To build innovation, growth and sustainability

5. Early considerations Is there an income stream with a surplus?
What do you need investment for?
Is there an income stream with a surplus?
What social impact will you create?
For an asset
Government contract
Rental income
Working capital
Membership fees
Bridging finance
Donations
To expand
Trading

6. But there have been gaps in the “market”
Social Investors
Social Investment Products
Charities and Social Enterprises
Supply gap
Demand gap
Social investment products need to be better suited to what charities and social enterprises are asking for
Many charities and social enterprises who could benefit from taking on social investment need support to be able to do so
We were launched in 2015 with the support of our partners the Big Lottery Fund, Big Society Capital and Government to address two specific gaps for charities and social enterprises trying to access social investment
How are we funded and governed?
Access was created by The Big Society Trust, working in collaboration with BLF, BSC and DCMS, following extensive consultation with the sector

9. Tackling the Supply Gap Tackling the Demand Gap
How Access seeks to address these gaps
Tackling the Supply Gap
Financing social investors in a new way
Tackling the Demand Gap
Providing long-term capacity building funding
£22.5m grant
£22.5m loan
£60m endowment
£45m blended as the Growth Fund

10. Charity/Social Enterprise
The Growth Fund
Social Investor
Charity/Social Enterprise
Loan
Pot for lending
Loan or loan + grant blend of under £150k
Unsecured
For growth, to help with cash flow, to stimulate income generating activities
Typically 3-6 year repayment
Interest of c. 6-12% APR on the loan
Loan
Loan layer gets repaid
Grant layer covers losses
Pot for making grants
Grant
Pot for covering costs of making small loans
Grant

11. The Growth Fund Northern Impact Fund Impact Loans England
Loans of £50 – 150k
Grant element available
c. 6 year term
South West England
£5.5m
Loans of £5 – 150k
Grant element up to 20%
3-5 year term
North of England and Midlands
Northern Impact Fund
£5m
Loans of £20 – 150k
3-5 year term
All of England
Impact Loans
England
Invest for Impact
£4m
Loans of £50 – 150k
Up to 30% grant element
3-5 year term
North West England

12. The Growth Fund Northern Impact Fund £20k investment
“We’ve got the business model nailed and the Key Fund has really helped us analyse what’s working and what’s not. It’s been a lifesaver really. As a small business, it’s very easy to go under just because people aren’t paying as quickly as needed. It helped us bridge that gap and stabilise us as a company. And it helped us to analyse our business, particularly the CIC that’s more driven by need. Our vision is big and our heart is big, but we have to do it one step at a time and not be overwhelmed to meet everyone’s needs. Key Fund has been instrumental in bringing about balance to make it a sound business model. It’s given us that breathing space, and helped us focus.” - Jeniffer Westwood - Director

13. Capacity Building – The Reach Fund
Charity or social enterprise wants to raise investment NO
Not viable
Approaches
Social Investor for a loan
YES
Investment ready
MAYBE
Likely to be a viable proposition but not yet investment ready
Now open
Grants c. £15k
c. 200 organisations
Charity or social enterprise undertakes diagnostic and applies for a grant NO
Decided not to take on investment
Undertaken investment readiness project
YES
Investment ready

14. Capacity Building – The Reach Fund
“The grant from Reach enabled Hollywell to put together a robust, long term financial plan which was not only an invaluable tool to support our investment funding application for the Health & Wellbeing Challenge Fund, but also an essential part of our planning for future growth.”
Katie Sherjan
MAYBE
Work needed on financial model to make a firm decision
YES
Secured £90k investment from the Health and Wellbeing Fund (South West)
£4,500 grant to design, build and develop the financial model

15. Market Championing

16. Early considerations Is there an income stream with a surplus?
What do you need investment for?
Is there an income stream with a surplus?
What social impact will you create?
For an asset
Government contract
Rental income
Working capital
Membership fees
Bridging finance
Donations
To expand
Trading

17. Goodfinance.org.uk
A collaborative project between organisations committed to improving access to information on investment & finance for charities & social enterprises
Funded by
A website for charities & social enterprises to help them navigate social investment
In partnership with

18. “As with any other aspect of strategy, trustees should feel confident to make bold and even radical decisions on social investment as long as they comply with their duties and responsibilities in reaching the decision and they know they have the information they need.“
Sarah Atkinson, Director of Policy and Communications, Charity Commission