Local Impact Funds

Local Impact Funds are a local social investment fund product that provides appropriate and tailored support to charities and social enterprises in a local community. It can provide a locally-led solution to directing the existing supply of finance to where it is most needed

The funds can help direct investment into local places to increase jobs and growth in local areas, grow a social economy and support social entrepreneurship. They -

  • Combine wrap around business support with growth investment.
  • Connect European, national and local supply with local demand for finance.
  • Support local economic and public services strategies.

Local Impact Funds aim to deliver a joined up journey of support to charities and social enterprises in a local area, from start up through growth and sustainability, thereby contributing to sustainable economic growth and the attainment of positive social outcomes in deprived communities. They do this through:

  • Providing high risk, small unsecured lending (investment principally, though not exclusively, of under £250,000) to charities and social enterprises seeking to grow their operations and impact within an area.
  • Providing start-up funding by way of small grants to social entrepreneurs to help them start-up and grow.
  • Providing an ‘ecosystem of support’, that will help these charities and social enterprises become investment ready, develop their capacity and deliver multiple positive social benefits to the area, and create a pipeline from start-up to investment ready social projects and ventures.
  • Joining up and building on (not duplicating or displacing) existing structures of support and financing for the broader social sector that will enable its longer term sustainability. It is hoped that Local Impact Funds become an integral piece of local infrastructure in the longer term.

How will it work?

Why not read our prospectus for growing a local social economy?

Join the Network

The new Local Impact Fund network brings together professionals in the social, statutory and private sectors interested in exploring the use of the Local Impact Fund model to grow their local economies.

Join the network