Multi-million pound ‘Northern impact fund’ launches

A £5.5m fund offering grant and unsecured loan finance to social enterprises has launched today.

Key Fund, a long-standing investor in community and social enterprises, is delivering the Northern Impact Fund, aimed at new and early stage enterprises seeking finance to support growth.

Matt Smith, CEO of the Key Fund, said: “With this fund we’re offering finance of up to £150k, but typical investments will be around £50k, with up to 20% 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 is open to applications from social enterprises operating in Yorkshire and the Humber, the Midlands, North East, and North West.

Mr Smith said: “We have always believed small organisations can deliver big impact in disadvantaged communities. In this current economic climate, we are seeing good businesses struggling and access to finance and support has never been so crucial, so we’re delighted to be delivering the Northern Impact Fund.”
The grant is aimed to help cover the initial costs related to social impact, such as investing in training for young people and staff, as the enterprise gets up and running.

One of its first grant/loan investments was in Barnsley Community Build, which delivers training and employment in the construction industry for young people and those disadvantaged in the labour market.

Mr Smith said: “Barnsley Community Build is living proof that passion and determination, matched with the right blend of financial support, can and does make a significant difference to the development of sustainable enterprises. Our founding mission is to break down the barriers that hinder the growth of local economies and communities, for a fair society.”

The Northern Impact Fund has received support from the Growth Fund, which is an initiative of Access – the Foundation for Social Investment.  The Growth Fund has been designed to increase the availability of small, affordable, unsecured loans for charities and social enterprises.