Access – The Foundation for Social Investment A Bridge to Social Investment event The Growth Fund and The Reach Fund 19 May 2017 Seb Elsworth, Access Chief Executive

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

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

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

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

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

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

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

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

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

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

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

Market Championing

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

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

“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