Key Fund for social & community businesses
Product Description:
Key Fund is a social enterprise that provides flexible grant, loan and equity packages to support Social Enterprise that is continuing to develop its presence in the East Midlands.
Investments are normally from £5,000 – £150,000 (in some cases we are able to lend up to £300,000) interest is charged at 6.5% on a simple basis, 2% fee and a loan term of 5 yrs. maximum. (Typical APR 12.4%)
Key Fund will also consider interest only loans.
Funds can be used to support revenue or capital costs, including bridging facilities, capital purchases, cash flow, refurbishment costs, running costs, set-up costs and wages.
Area of Expertise:
Business support of flexible grants and loans
Community
Social Enterprise
Eligibility:
We support organisations who want to make a real impact across a diverse range of sectors including the Arts, Health and Social care, Education, Health, Digital, Eco and Community Development.
Your business or social enterprise is based in the North of England or Midlands, and are, or intend to form a legal company.
Your business has a direct social mission at its heart.
You have been declined by a mainstream bank.
The organisation must have a community benefit or environmental aims at the heart of the business, with income-generating activities and the profits mainly reinvested to achieve these aims.
Key Fund supports mission driven organisations that balance their Commercial Activity with their Social Impact:
• Community Organisations
• Charities
• Social Enterprises
• Social Firms
‘Social Enterprise’ describes the purpose of the business and can take many legal forms:
• Limited Companies (Limited by Guarantee or Shares)
• Community Interest Companies (Limited by Guarantee or Shares)
• Industrial and Provident Societies
• Co-operative Societies
• Community Benefit Societies
• Limited Liability Partnerships
Key Fund believes incorporation is advisable, and often necessary, where businesses are taking on significant contractual obligations. It is anticipated therefore that the majority of applicants will have adopted an incorporated legal form. Consideration will however be given to applications from unincorporated organisations on a case by case basis.
Districts:
- Leicester City
- Blaby
- Charnwood
- Oadby and Wigston
- Melton
- Harborough
- Northwest Leicestershire
- Bosworth and Hinckley