The Kent Social Enterprise Loan Fund (KSELF) is a blended loan and grant fund.
KSELF is a social lending programme, aiming to bridge the increasing funding gap for new and existing social enterprises and charities in Kent and Medway, by offering unsecured loans of between £10,000 and £100,000. The financial package will include an element of up to 30% grant of the loan amount.
The aim of the Fund is to break down the barriers which prevent social businesses and charities from accessing finance, and encourage a more enterprising approach to achieving positive change in our communities. Once finance is repaid, it will be re-loaned and re-invested back in the community.
Who can apply?
Organisations who can demonstrate that they operate as social enterprises, including:
- Clear social aims and community benefit noted in governing document
- Trading activities which form a significant part of income
- Assets and/or profits used and retained for the benefit of the community
- Specific power to borrow
A wide variety of organisational structures can apply including charities, community interest companies, companies limited by guarantee, industrial and provident societies. The Fund will not provide finance to individuals, unincorporated entities or private/statutory sector organisations.
Key attributes of the Fund:
- Blended loan/grant of between £10,000 to £100,000
- The potential of a grant of up 30% of the loan amount
- Term of between 1 and 5 years
- Unsecured facility
- Support with initial and ongoing financial planning
- Flexible and tailored packages
- Fixed rates and terms – flat interest rate of 5%
- Funds reinvested in the sector
- Investment readiness and support which will be provided by Kent Community Foundation’s Grants and Social Loans Manager
Terms
A range of factors will determine bespoke terms for each applicant. We anticipate most loans will be unsecured with repayment to be made over 2-5 years. A modest set-up fee may be payable for the business support that is provided.
The scheme, delivered by Kent Community Foundation, was originally established with funding from Kent County Council in 2012. Further funding from Big Lottery Fund and Big Society Capital, managed by Access was injected in 2017.
Since the original launch of our social lending programme, Kent Community Foundation has supported over 70 organisations and has provided loans and grants to the value of £3.5 million.