Patron Profile
On a mission How brokers are helping to create fairer communities Rob Benfield Director of Investments Social Investment Business
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vercoming an aversion to taking on debt is a big ask for charities and social enterprises which have traditionally used grants and other channels to access the funding they need to operate and grow. But COVID-19 changed their outlook. Almost forced into exploring alternative sources, many took advantage of the Bounce Back Loan Scheme (BBLS) and other government initiatives designed to support businesses and organisations with finance which would help them survive the unchartered waters brought about by the pandemic. Now, this enhanced awareness and understanding of the utilisation of debt is driving greater demand across the third sector. And that’s where Social Investment Business (SIB) comes in. With a mission to provide finance to help create fairer communities, we specialise in helping organisations become more resilient and sustainable, so they are in the best place to grow and increase their impact. SIB has a 20-year track record in social investment, grants and business support programmes, and in data analysis, having invested and distributed almost £0.5 billion in finance to well over 3,000 charities, social enterprises, and community businesses across the UK. Like many other lenders, the past couple of years have been 16 | NACFB
exceptionally busy for SIB, as we mobilised at pace to respond to the impact of the pandemic. Now, we have more than £100 million under management across grants and loans, including £39 million disbursed in the year just gone.
Building resilience to support the recovery We are acutely aware that the pandemic has exacerbated inequalities with some places and communities having been hit harder than others. As social investors, we need to ensure that our funding is reaching the areas of greatest need. So, in 2020, SIB launched the Recovery Loan Fund making over £21 million in repayable finance available to charities and social enterprises alongside groups and communities that have previously been unable to access funding.
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SIB’s average loan size is around £250,000 although we will lend up to a maximum of £1.5 million with the loan being unsecured or ‘lightly’ secured
