Social impact fund manager Resonance has launched a £10m fund to back social enterprises which are “making a difference” in communities across England.
The Resonance Enterprise Investment (REI) fund will provide various finance options to organisations tackling challenges such as improving health and wellbeing, reducing economic inequality and the transition to a low-carbon economy.
There will be an initial focus on those delivering in the south west, north west and west midlands, but with the capacity to invest in enterprises across the rest of England if required.
The funding products have been designed to allow investment into a wide range of legal structures including charities (with trading income), community interest companies and companies limited by shares.
Resonance says REI aims to empower social enterprises that often struggle to access the right kind of investment by giving them access to funding to scale their work and “deliver tangible benefits to communities.
Leila Sharland, acting head of growing enterprises at Resonance, said: “Social enterprises are driving real change, but they often face barriers to growth. REI is designed to remove those barriers.
“Our goal is to help these organisations expand their impact, improve lives and create a better living environment.”
The REI Fund launch follows the success of Resonance’s Social Investment Tax Relief (SITR) and growth funds, which successfully made 123 investments, with £9.9m previously raised from 145 investors.
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Investors, including Unity Trust Bank, Enterprise for Development and the Ceniarth UK Foundation, have already pledged to back the new fund.
Seb Elsworth, CEO of Access, added his support: “We’re pleased to see the launch of the Resonance Enterprise Investment fund, which has been part-funded through our Flexible Finance programme.
“The unique approach will help social enterprises access the kind of patient, flexible finance they need to grow and deliver lasting impact. By combining our grant – with backing from Unity Trust Bank and the British Business Bank’s guarantee scheme – this fund will strengthen the flow of capital into communities that need it most.”
Ceniarth trustee Diane Isenberg added: “We were delighted to participate in the launch of the REI Fund and to provide catalytic capital in order to complete this blended facility.
“We are focused specifically on improving livelihoods for those in disinvested areas of the country. The type of community finance employed by REI is a key lever for development in these communities.”
Keith Palmer, founder of Enterprise for Development, explained “We are delighted that Enterprise for Development is part of this exciting venture.
“The fund also benefits from the Growth Guarantee Scheme, provided by British Business Bank, and a substantial Access (the foundation for social investment) grant; both designed to lower the cost of capital to recipients of investment from the fund, enhancing affordability.”
Reinald de Monchy, chief banking officer at the British Business Bank, said: “One of our key priorities is supporting smaller businesses in underserved communities across the UK, and it’s good to see Resonance Enterprise Investment fund utilising our Growth Guarantee Scheme to help achieve that goal.”
For details of how to apply, visit the Resonance website.
