A £4m flexible social finance offer has launched today, to support socially trading organisations in Newcastle, North of Tyne and Northumberland to grow.
Created in collaboration with community business champions Big Issue Invest and Power to Change, the ‘finance for good’ fund aims to support the growth of the social economy in the North of Tyne, by providing access to flexible and tailored finance and support.
Socially trading organisations are businesses which set out to deliver social benefits and trade commercially. They include community businesses, community interest companies, social enterprises and cooperatives, who demonstrate their social purpose through tackling social and environmental issues.
In the North of Tyne there are approximately 3,500 socially trading organisations employing almost 30,000 people. Power to Change research has shown for every £1 spent by a community-owned spaces, 56p stays in the local economy, compared to 40p for large, private sector firms.
Designed using feedback from local socially trading organisations, the fund offers patient, flexible payment terms and can be used for a wide range of projects to help organisations to grow their trading activity, create new jobs and increase their social impact. This might be through carrying out building works or refurbishments, purchasing new equipment, or improving or adding new services.
Repayable and tailored finance options of between £50k-£400k will be available and wrap-around support, specialist advice and mentoring will also be provided.
The fund is part of the Mayor’s commitment to helping local businesses create more jobs and build community wealth.