1. The SIB Group are + Growing the local social economy with place based investment Chris Dadson Business Development Manager

2. About SIB Group

3. ‘Local Impact Funds’ direct investment into local areas to increase jobs and growth, grow a social economy and support social entrepreneurship. Local Impact Funds can deliver ‘place based social investment’. They: Combine wrap around business support with growth investment. Connect EU, national and local supply with local demand for finance. Support local economic and public services strategies. The Liverpool pilot fund was launched in January, we are looking to launch a second pilot fund in Northamptonshire before the summer. 10-20 Local Impact Funds could be set up over 2014-17. Local Impact Funds: Overview

4. Charities and social enterprises have a positive impact on society and economy 38% work in the 20% most deprived communities in UK (compared to 12% SMEs). £1 public investment generates £6.25-£8.33 of GVA (£3.57 across all markets). There is a demand for social investment £1.3bn - £2.1bn annual demand for social investment, £286m of deals in 2012. 38% annual growth of the social investment market: £1bn of done deals in 2016. There is a supply of social investment BSC - £600m. €6bn of EU funds, 2014-20, can be drawn on. We need mechanisms for connecting supply to demand… Local Impact Funds: Context and rationale

5. Be locally driven, flexible, and responsive to need and context. Provide a tailored package of support and finance for charities and social enterprises at all stages, from start up to sustainability and growth. Build on existing local infrastructure and support, drawing into one place an appropriate blend of national and local actors, enhancing not duplicating activity. Support social economic growth anywhere in the world. Don’t rely just on EU funds, as any group of interested partners could collaborate on this initiative. Local Impact Funds: Vision

6. Charities and social enterprises need to sell their products and services into functioning local markets if they are to thrive. Local stakeholders can help enable the sustainability of Local Impact Funds: Clinical Commissioning Groups (CCGs) Local Authorities Police Crime Commissioners (PCCs) Other ‘buying’ institutions such as Universities, Housing Associations and large local employers. Ultimately the Local Impact Fund can be an engine for public service reform, and provide a hook for corporates to support the sector through CSR activity. The new Social Investment Tax Relief is a big opportunity to attract new and local investors into solving local problems. The time is now to make the most of these opportunities… Local Impact Funds: Importance of ‘Local’

7. Local Impact Funds: Model Type of investment: Unsecured loans Investment terms: £50,000 - £250,000 (av. c.£100,000) Up to 5 years Pipeline support: Start up, incubation, investment readiness Different in each LIF area

8. 1.The Liverpool City Region Impact Fund (LCRIF) is a partnership between the Adventure Capital Fund (SIB’s parent charity) and Social Enterprise North West. 2.We launched the £2m pilot Fund in January 2014. It will be open to applications from charities and social enterprises in the LCR from 1 April 2014. 3.It draws on £1m of existing EU investment from the 2007-13 programme, which ACF is matching with £1m from its Communitybuilders fund. 4.The LCRIF is linked to an existing £7m business support programme, Big Enterprise in Communities (BEiC), being run by SENW. 5.The LCR LEP has allocated 2014-20 EU money to build on the pilot: £1.7m of ESF, for a £3.4m wrap around business support programme. £3m of ERDF, for a £6m Local Impact Fund. GM and the 3 other North West LEPs are interested… Liverpool City Region Impact Fund: pilot

9. Scaling the model up The SIB Group has successfully applied to run the Liverpool City Region Impact Fund and will manage ERDF as part of the UK’s first Local Impact Fund. We are on target to establish a second pilot in Northamptonshire. We will evaluate both pilots to share learning with interested stakeholders. We believe there may be demand for around 10 Local Impact Funds in 2014, and up to 10 in 2015 – 2017. We will share learning and work collaboratively through a network of partners who set up and manage Local Impact Funds. We are investigating the potential to create a template approach to developing, financing and managing a network of Local Impact Funds.

10. More information about us www.sibgroup.org.uk @TheSocialInvest 020 7842 7788