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Welcome
Community anchors
Loan finance workshop – CLT Conference
● to explore if you, or organisations you work with, could access our funding for community anchors and health / care / wellbeing projects
● to encourage more take-up of our funds from a broader spread of organisations by March 2011
● to ensure you have contact details for follow up ● my details:
[email protected] Mobile 07890 825978
Aims of workshop
● for community anchors: we can provide large feasibility grants and main investments in new or renovated community buildings of up to 2 million (up to 40% grant / 60% loan)
● for health / care / wellbeing projects and organisations, the funding is mainly loan (up to 10 million) with some grants for start ups
● free business support (consultancy) for all projects that appear investable.
Funding Headlines
● we are the fastest growing social investor in the country, managing nearly £400 million
● we help social enterprises that need investment that a bank won’t provide or a grant funder can’t
● we recognise we invest in people and pride ourselves on an approach that works
About The Social Investment Business
● lots of definitions (no right answers)● do you (or organisations you work with meet the
definition we use for the funds?) ● typically the organisations we fund are aiming to
provide multiple services to residents in the immediate community and wish to acquire / upgrade assets
● watch this space as government consider what types of developments to prioritise
Community anchors …
● a meeting space or a base (sometimes called a ‘hub’) which is available, welcoming and accessible to all
● access to seed corn funding, most often small grants funds or community chests
“Firm Foundations” 2004 recommended:
● access to support provided by workers with community development skills
● a forum or network that is deliberately inclusive, open and participatory, that is owned by and accountable to the community
● appropriate learning opportunities to equip people for active citizenship and engagement.
… and also
● advice and support, learning, volunteering, drop ins, lunch clubs, café, meeting space, office space, facilities for entrepreneurs and groups, campaigning, voice and advocacy, signposting and referral, information and resources, newsletters, befriending, counseling, community events, community fundraising, leisure activities, dance and fitness classes, supported living, and live / workspace
Community anchors provide a number of these services:
Community anchors are local...
Examples of community anchor projects
We can fund/invest in projects such as....
Local hubs and community centres
Economic development trusts supporting all small enterprises and combating worklessness
Asset transfers where proposition is to deliver local services
Combined hubs and elements of supported living/housing
On case by case review, we might consider projects that are...
Housing/retail/workshops
Urban farms
Economic and social regeneration
Museums
Green spaces
Sports/recreation
We can’t consider projects that are....
Wind power
Radio stations (where there is no other community activity)
Pure leisure/tourism/heritage
Single faith/culture
Single issues e.g. Young people
Moving assets e.g. Trains, boats
Pure agriculture / horticulture
Types of investment in community anchors – Model A
Investment in asset by The Social
Investment Business
Services
Surplus
Model B
surp
lus
surplus
surplus
surplus
What The Social Investment Business can fund
Health and well being hubs
Healthcare and
well being projects
Supported living
Supported work
placements including
nurseries, horticulture,
forestry
Residential careSettlements
Development trusts
Land trustsLocal resource centres
Neighbourhood centres
Community anchors
Community
centres
● does anyone think they could access the funding? What for?
● does anyone know anyone else who could access the funding? What for?
Stock take …
In order to be eligible, an organisation must:
● be seeking to become more financially independent and less grant dependent through activities that have community relevance and social value
● be based and working in England
● operate for the benefit of a defined neighbourhood
Criteria for investment in community anchors (1)
● work inclusively within their community, including marginalised groups
● show how they empower, or plan to empower, their community through multi-purpose community development and stimulating community led action
● have a track record of delivering to the community it is based in
Criteria (2)
● be locally controlled with local people or representatives of local groups making the spending, staffing and other decisions around priorities
● multi-purpose - providing or hosting a number of different activities and services.
Criteria (3)
Three stages of support for community anchor applicants
Support from The Social Investment Business
Intensive support from specialists
Our in house Business Support team
Support from Community Alliance*
By 31/03/2011
* Development Trust Association, bassac and Community Matters
By 31/12/2010
We fund as many applicants as we can
● enables things to happen now, especially where large sums of money are required
● encourages long-term thinking and business planning
● provides flexibility, it is money to use as you choose
● enables you to do something different for the beneficiaries you serve
● can be re-invested many times
Why loan finance?
Loans are not income streams, but financial enabling tools. Loans can be used for:
● managing cash flow ●kick starting new services / projects●organisational growth and development●building costs and purchasing buildings●enabling new contracts and trading activities
Why loan finance?
● not competitive● no deadlines – rolling programmes (8-12 week
turnaround)● revenue funding and capital● can fund individual organisations or consortia● no project too large● any area of health or social care or community
anchor organisations
Key facts about the funds
You must…● present a cash flow forecast with well argued rationale re
income forecasts● demonstrate business /enterprise mindset● have up to date and controlled finances● have buy in from your Board and supporting governing
documents● have the financial capability to track a loan● have identified risks reasonably
Assessing investment readiness
● we take an all-round view to looking at the organisation’s potential to move forward
● therefore before we invest, we look at: governance, financial capability / controls, market awareness / market position, operational delivery ability, leadership / ambition, credibility / reputation, track-record, structures / policies and procedures
Assessing your ability to repay
● dialogue based process● if your proposal is promising, we assign a Senior
Investment Analyst who will:● carry out due diligence checks (assesses risk)● construct a deal● visit your organisation● present your proposed deal to our investment
committee for sign off
How does the application process work?
We can provide free consultancy support if:
● you have an ambitious proposal with growth potential that needs development
● you have some key gaps to plug before we can lend (eg, accounting systems)
● you experience difficulties after we make the loan (we help re-plan / re-finance)
What about support?
● call 0191 261 5200 to talk to a staff member of The Social Investment Business
● speak to your local contacts at DTA, bassac or Community Matters
● send a brief (2 sides A4 max) proposal to [email protected]
● visit www.thesocialinvestmentbusiness.org or www.communitybuildersfund.org.uk
To discuss/develop your ideas…
