The Social Impact Accelerator ("SIA") can provide flexibly-structured loan finance of between £200,000 and £1,000,000 to ambitious ‘regulated' social sector organisations. They will consider propositions which fall outside or extend beyond traditional lending criteria; based primarily on current and projected cashflows and growth potential, rather than historic trading, asset-cover or balance sheet positions.
Loan Amount: £200,000 to £1,000,000. Loans may be advanced in tranches, subject to agreed milestones.
Loan Term: 2- 5 years. Longer term may be considered by exception.
Repayment: Amortising, bullet or stepped repayments can be considered. Repayment profiles will be considered on a bespoke basis to suit each proposition.
Security: A debenture typically will be taken, however, it is acknowledged that tangible-asset cover often will not exist for a proposition. 2nd ranking debentures behind senior lenders will be considered.
Pricing: Risks are expected to be higher than traditional (senior) lender finance. Pricing will be structured accordingly and based on bespoke risk assessment. Some loans may fall under state aid classifications and if so, will need to be compliant with State Aid rules.
The FSE Group are looking to support expansion strategies which will deliver a "step-change" in an organisations scale of impact and financial resilience. Whilst by no means prescriptive, this might include:
- Investment in staff, marketing or other overheads in connection with capacity building and activity that will deliver identified revenue growth
- Development of new products or services (based on identified demand or commissioning)
- Expansion of existing products or services (geographic roll-out, social franchising etc)
- "Deposit support" for a strategic asset purchase (e.g. where bank finance results in a finance gap which would place undue strain on unrestricted cash reserves).
- Short-term bridging support pending a specific and clearly defined repayment event (such as an identified inward investment or cash-receipt or potentially by exception, fund-raising event).
The Social Impact Accelerator is open to "regulated" social enterprises only.
To apply, you will need to fall within at least one of the following categories:
- a charity or charitable incorporated organisation registered with the Charities Commission of England and Wales and/or the Office of the Scottish Charity Regulator (a "Charity")
- a wholly-owned subsidiary of a Charity
- a community interest company (whether limited by guarantee or shares)
- an industrial and provident society which is a community benefit society
You should have an articulated social plan in addition to clear social objectives specified within your constitutional documentation.
Your social impact should fall within the United Kingdom.
You should be prepared to adhere to responsible business principles (details available on request).