We're a community project
Ways for community groups, co-operatives and social enterprises to raise money, including from the community itself.
Community projects such as shops, pubs, energy schemes and spaces can raise money from the people they serve, as well as from lenders with a social purpose.
Community shares let co-operatives and community benefit societies sell shares to local supporters. Reward crowdfunding can pre-sell what you plan to offer. Community lenders will often consider projects that banks turn down.
8 routes to look at, cheapest first
Compare the first 4 side by side- L0
Free or nearly free
Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees.- Grants, tax reliefs and prizes
Local, regional and sector grants
Grants from councils, combined authorities, the devolved governments and sector bodies, often for equipment, jobs, energy saving or exporting. You do not repay them, but they are usually small and come and go.
MonthsUp to £315k - Crowdfunding and community finance
Donation-based crowdfunding
People give money to a cause or community project through an online platform and expect nothing back. It costs nothing but fees and effort, but it only works for projects people want to support.
Months - Crowdfunding and community finance
Reward-based crowdfunding
People pay in advance for a reward, often the product you plan to make, through an online platform. You give up no shares and repay nothing, but you must deliver what you promised.
Months
- Grants, tax reliefs and prizes
- L1
Very cheap or subsidised
Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved.- Government-backed and community lending
Community development finance (CDFI) loans
Loans from Community Development Finance Institutions, lenders that exist to support small businesses, start-ups and sole traders that mainstream banks often overlook.
DaysPersonal guarantee likely - Government-backed and community lending
Social investment for charities and social enterprises
Loans and blended grant-and-loan packages for charities and social enterprises, from social investors that want a social return as well as their money back. Often unsecured, and usually only for organisations with a social purpose.
MonthsFrom £5k
- Government-backed and community lending
- L2
Mainstream secured debt
Standard borrowing from banks and mainstream lenders, often secured on assets or backed by a personal guarantee. - L4
Expensive or fast
Quick to arrange, often unsecured, and usually the most expensive way to borrow. - Equity rungs. These routes cost no interest, but you give up part of the ownership and control of your business. They are ranked by how much you give up, not by a made-up interest rate. Over time, equity can be the most expensive money of all.E1
Light dilution
You sell a small share of the company, usually to many small investors or people you know, and keep control of how it is run.
Worth knowing
- Showing local support, such as pledges, surveys or a successful crowdfunding campaign, can help unlock loans and grants.
- Your legal form matters. Only co-operatives and community benefit societies can issue community shares.