Key Fund to support 100 enterprises a year with £10m new funding
Melanie May | 28 October 2016 | News
North of England investor in community and social enterprises Key Fund has announced its intention to invest in 100 enterprises per year for the next three years, with £10m of new funds.
The new funds are being announced at its launch event today. They include a £5.5m Northern Impact Fund, supported by Access – the Foundation for Social Investment, with funding from Big Society Capital and the Big Lottery Fund. Key Fund has also secured £4.5m of new finance direct from Big Society Capital, to support general investment activity.
Key Fund’s mission is to invest in enterprises that make a real difference to local communities. All of its investments are made to enterprises turned down by mainstream finance providers, particularly those with a high social impact in disadvantaged areas.
In the last year Key Fund invested a total of £10m in 201 enterprises, which received from £5k to £300k each. According to Key Fund, the investments created 37 new businesses, created 293 jobs and safeguarded 188 jobs, and included East Street Arts, which received a £110,000 loan to renovate a building in Leeds and create a residential Art Hostel and creative hub. Eudaimonia, which provides affordable, healthy ‘social’ eating to help address social isolation and improve community health through its Super Kitchen, received a £90,000 loan to help it purchase a vehicle and ancillary equipment.
Nicola Greenan, external relations director for the Art Hostel (pictured), said:
“Even though it’s a strong business model because it’s completely new and we’re a charity, it was difficult to get high street lending, especially in the current economic climate. Without Key Fund’s support, the project wouldn’t have happened.”
Matt Smith, CEO of Key Fund, added:
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“There are inspiring businesses and individuals who are not only generating jobs in some of the most disadvantaged communities, but are also tackling deep-rooted social issues. We’re now looking for 300 more community and social enterprises to come forward over the next three years, whether they are start-ups or existing enterprises looking to expand, diversify or grow.”
Information on how to apply for the Northern Impact Fund is available on the Key Fund site.
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.