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.
- No security
How it works
Social investment is repayable finance for organisations whose main purpose is social, such as charities, community interest companies and co-operatives. Social investors look for social impact as well as getting their money back.
- Blended finance: many products combine a grant with a loan, so part of the money does not need repaying. For example, the Enterprise Growth for Communities programme, run by Access – The Foundation for Social Investment, offers blended finance through five funds, typically £50,000 to £100,000, and from £5,000 to £200,000 depending on the fund. The loans are largely unsecured. It is funded partly from the Dormant Assets Scheme.
- Who provides it: specialist social lenders and fund managers. Better Society Capital, set up in 2012, describes itself as a social investment wholesaler: it helps build the market by backing other social investors.
- Finding it: Good Finance, which Better Society Capital helped design, helps charities and social enterprises find their way around social investment.
Tax relief: Social Investment Tax Relief, which gave investors tax relief on social investments, closed to new investments on 6 April 2023.
Upsides and downsides
Upsides
- Designed for organisations that banks often find hard to lend to
- Grants blended with loans reduce what you repay
- Often unsecured
- Investors who understand and value your social purpose
Downsides
- Only for organisations with a clear social purpose
- You still have to repay the loan part from your income
- Impact reporting adds work
Risks
- Taking on debt that grant-funded activities cannot repay
- Putting the organisation's assets or mission at risk if repayments are missed
What it costs
- How it is priced
- Interest on the loan, often combined with a grant that is not repaid
- Costs that are easy to miss
- Arrangement fees with some lenders
- Reporting on your social impact
- Time to prepare an application and show you can repay
Enterprise Growth for Communities funds offer £5,000 to £200,000, typically £50,000 to £100,000. Larger social investments, for example in housing, are available from some social investors.
Have a quote? True cost of a loan: work out the APR-equivalent and total cost
Does it fit?
Could fit when
- You are a charity, community interest company or co-operative with trading income
- You are raising money for a community or social project
Unlikely to fit when
- Your organisation has no social purpose
- You have no trading income to repay a loan from
Who can use it
- Business types: Community interest company, Co-operative or community benefit society, Charity, Private limited company
- For charities, social enterprises and other organisations with a social purpose
- Usually you must earn some income from trading to repay the loan
- Each social investor sets its own criteria
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all government-backed and community lending
0%
0 of 4 ticked
- A clear social purpose
- Income to repay from
- How you measure impact
Regulation and protections
Social investors set their own terms. Some are FCA authorised, such as Better Society Capital. Check the agreement for protections and complaint routes.
Types of provider: Social investment fund managers and lenders; Community development finance institutions; Charitable foundations that make loans.
Also consider
Sources
- Access – The Foundation for Social Investment: Enterprise Growth for Communities · checked 7 October 2026
- Better Society Capital: About us · checked 7 October 2026
- GOV.UK: Use SITR to raise money for your social enterprise · checked 7 October 2026