[cma-l] Local Impact Funds to provide a new kind of finance for charities and social enterprises

[CMA-L]

A new funding model that promises to provide simple finance for local
charities and social enterprises was launched at a fringe event hosted by
the Social Investment Forum <http://www.sibgroup.org.uk/> at the Liberal
Democrat party conference recently.

The Local Impact Fund model is outlined in a prospectus published by the
Social Investment Business Group called "Growing a local social
economy"<http://www.sibgroup.org.uk/lif/>.
The publication highlights the economic and employment benefits of
supporting the local sector, in addition to the social impact. It also
shows how a locally led solution to social investment will target resources
where they are needed most.

Local Impact Funds will be led by local sector bodies and will bring
together local and national partners and investors to provide tailored
support for charities and social enterprises throughout their investment
journey; from investment readiness support and mentoring to help them to
develop their business plans, to loans and other investment products to
help them scale up, develop assets and grow.

The funds are designed in a way to work closely with Local Enterprise
Partnerships (LEPs) so that EU funds, which the LEPs will be in charge of
distributing from 2014, could potentially form part of the investment mix.
Local Impact Funds are being tested as a future recognised Financial
Engineering Instrument (FEI) by the government and have been included in
official guidance to LEPs as they develop their strategies for using EU
monies from next year.

Other investors can include national investors like the SIB Group and Big
Society Capital, along with local investors like CDFIs, local authorities,
community foundations and individuals. This mix of investors will allow the
funds to meet the needs of the local sector by providing early stage
support, as well as smaller loans with a high appetite for risk.

A broad partnership of local and national organisations have joined
together to support the initiative.

Source:
http://www.sibgroup.org.uk/news/news/2013/local-impact-funds-to-provide-a-new-kind-of-finance-for-charities-and-social-enterprises/

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