What is Social Investment?
Social investment is loan funding, or sometimes a combination of grants and loans known as blended finance.
Social investors support organisations that create social or environmental impact. Loans must be repaid, and each investor will agree repayment terms with you.
Getting Ready for Social Investment
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Read case studies and stories on investor websites for inspiration and learning.
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Good governance and strong leadership are essential when applying for loans.
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Be clear about why you need the loan, how it will help your community and how you will repay it.
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Think carefully about risks and how you will reduce them.
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Show any additional funding or income already secured.
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Highlight your experience, strengths and enterprise skills.
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If refused, ask for feedback and continue exploring other investors.
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Prepare realistic financial forecasts.
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Ask for support and advice if needed.
Useful resources: Is it right for us? via Good Finance
Islamic or Shari’ah Finance
Islamic finance is based on the principle that money itself has no intrinsic value and should only be used in productive and ethical ways.
Interest (known as riba) is not permitted, so finance products are structured differently from traditional loans.
Anyone can use Islamic finance products and services.
Read: Understanding Sharia Finance
Listen: Podcast about Sharia compliant social finance
Social Investment Organisations
Useful organisations offering loans, blended finance and social investment opportunities.
Loans and investment funding to address social issues including inequality and poverty.
Minimum loan of £50,000 for new customers.
Loans for organisations tackling social and environmental challenges.
Loans from £50,000 to £250,000 through WCVA for Welsh social businesses looking to grow or purchase assets.
Loans for co-operatives and social enterprises with competitive rates and no personal guarantees.
Loans up to £300,000 to support community ownership of buildings and assets.
Loans from £1,000 to £10 million for start-ups, growing businesses and employee buy-outs.
Loans between £50,000 and £1.5 million to help social businesses increase their impact.
Alternative loans for charities and social enterprises that may not qualify for mainstream finance.
Loans between £1,000 and £25,000 for businesses, social enterprises and home improvements across Wales.
Provides grants and loans to support Welsh social enterprises and community organisations.
Loans from £250,000 supporting organisations creating positive social, economic or environmental impact.