The Kent Big Society Fund has been established with initial funding from Kent County Council to provide loan financing to support existing and newly created social enterprises that benefit the local community and enhance the economic, social and environmental vibrancy of Kent.
The aim of the Fund is to spread the culture of social enterprise and break down the barriers which prevent enterprising social businesses from accessing finance. Once finance is repaid, it will be re-loaned and re-invested back in the community. Key attributes of the Fund:
- Investment from £10,000 to £100,000
- Flexible and tailored packages
- Accessible application process
- Fixed rates and terms
- On-going supportive relationship
- Funds reinvested in the sector
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 form a significant part of income
- Assets and/or profits are used and retained for the benefit of the community
- Specific power to borrow
We expect a wide variety of organisational structures to apply including charities, Community Interest Companies, Companies limited by guarantee, Industrial & Provident Societies.
The Fund will not provide finance to individuals, unincorporated entities or private/statutory sector organisations.
Social enterprises must be operating within the Kent County Council administrative area and be utilising the finance to benefit Kent residents.
Application process
Initial Enquiry: If you are a Social Enterprise interested in applying for a loan, first download and complete the Loan Enquiry form.
Full Application: Your loan enquiry will be assessed by KCF and if you meet the eligibility criteria, you will be invited to submit a full application including a Business Plan, financial projections and cash flow forecasts.
Development phase: Your application will be reviewed and KCF will contact you if there is further documentation and/or additional information required to strengthen your application.
Assessment Report: Proposals that are sufficiently well-developed will be passed for assessment to our partners, The Key Fund, who may contact you for further information. The Key Fund is a well-established social lender with 13 years' experience of supporting social enterprise.
Panel Decisions: Once the assessment is complete, your application will be submitted to the next investment panel for consideration where it will be approved, possibly subject to conditions, deferred or declined. You will be informed of the panel decision at the earliest opportunity. All funding is at the discretion of the investment panel and KCF trustees.
Monitoring and evaluation: As part of the terms and conditions of receiving funding, all successful applicants will be expected to provide regular management information and progress reports. This will include information on the social return, community benefit and the creation of employment opportunities.
Terms of Loan Finance
Terms are bespoke to each applicant and will be decided on a range of factors. Unsecured loans can be made. Most loans are expected to be repaid over 2-5 years. Interest rates will normally be arranged as an upfront administration fee and a flat annual fee. For example, a loan of £30,000 to be repaid over 3 years would typically pay an initial administration fee of £1,200 (4%) and monthly repayments of £958 (4.8% flat annual fee). This is an equivalent APR of approximately 12.4%.
There may be some scope for providing an element of grant funding (maximum 4:1 loan to grant ratio) alongside loan finance to support development of business plans/new enterprise. Please note, however, grant funding is not guaranteed.
For further information please follow this link to read the Kent Big Society Fund Q&As.
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