The Combined Authority has worked with Big Issue Invest and Power to Change to set up £1 million Flexible Social Finance Fund.
Businesses, charities and social enterprises which work to improve their local communities have received a £1m cash injection from North East Mayor Kim McGuinness.
The new Flexible Social Finance Fund announced this week will support business and organisations tackling poverty, providing vital community services and helping local people take ownership of shops, pubs or community spaces in the North East’s villages, high streets, towns and cities.
And Kim McGuinness said today the £1m on offer was just the beginning, with the North East Combined Authority already looking at expanding its funding if there is strong demand from organisations in the region.
The Combined Authority has worked with Big Issue Invest and Power to Change to set up the fund, as part of its programme to create real opportunity and tackle child poverty across the region.
North East Mayor, Kim McGuinness, said: “The North East is known for its entrepreneurial spirit and compassion, and if we are to tackle poverty and create real opportunity, we need to start at the grassroots – and back people who are helping others.
“We all know that communities want to take control of their future and take hold of the opportunities facing them, but often the investment simply isn’t available – or it is not tailored for the projects they want to deliver.
“That’s why we’re stepping in to make a difference by investing £1 million to back social enterprises and help local people take control of their destiny, so they can keep our communities strong and our high streets vibrant.
“We’ll be working with groups that play an active part in their local economy, groups which often provide critical amenities and services in towns, high streets and villages which are often are not attractive to the private sector interests.
“I hope this is just the beginning of our support for people who create communities to be proud of. If there is strong support and take up the Combined Authority and partners will explore development of a larger fund to help more organisations.”
Danyal Sattar, Chief Executive of Big Issue Invest, said: “At Big Issue Invest, we make loans and investments to social purpose businesses, charities and social enterprises that create hope and change, across the UK. I was pleased to be part of the launch of the new Flexible Social Finance fund in partnership with North East Combined Authority and Power to Change. Everything happens in a place, a locality, a community and I’m delighted that through this partnership and this new fund, Big Issue Invest can use its experience to help support more socially trading organisations across the region to deliver more of the much-welcomed impact the fund is designed to facilitate.”
Tim Davies-Pugh, Chief Executive of Power to Change, said: “Power to Change knows that flexible and tailored finance works to help community businesses to be self-sustainable and ultimately thrive. Rooted in and serving local people, community businesses are vital to growing social economies that work for everyone. But we know they can struggle to secure loans from traditional sources, which is why partnering with North East Combined Authority and Big Issue Invest on this fund will enable community businesses to deliver social impact in the North East.”
The £1 million is the first phase of investment. If there is strong support and take-up, the Combined Authority and partners will explore development of a larger fund to help more organisations. In addition to the Flexible Social Finance Fund, Big Issue Invest and Power to Change will explore other funding routes for organisations in the North East.
ENDS.
The Flexible Social Finance fund provides an opportunity for communities to access the tailored investment they need to take forward their ambitions – whether community infrastructure projects – operating community owned assets like shops, pubs or leisure venues – delivering local solutions to reducing food waste and poverty – or creating other employment opportunities locally. The fund will provide loans of between £50,000 and £400,000.
One of the projects which will receive support from the fund is a charity which provides a safe and welcoming environment for women and children suffering from domestic violence, a hub for all their needs in terms of food, clothing, toys and security. With unprecedented demand from their current location, they are opening a second venue and need to access finance to support their development.
Another example is a community hub in North Tyneside, providing a local community base with an activity packed agenda throughout the week for local people. They have seen rising energy costs eat up the majority of their previous surplus, and current finance providers are unable to refinance. They will use the funding to invest in energy saving equipment.
It is expected to back organisations delivering social purposes, such as:
· Community development and regeneration including; community businesses, community infrastructure projects, and local cooperative training models
· Green enterprises such as retrofit
· Health and wellbeing improvements including sport, recreation, and leisure.
· Local green transport solutions in areas of need
· Cultural and visitor economy development
· Hospitality and food venues, particularly those addressing food waste and food poverty
Further details and registrations of interest can be found by visiting Big Issue Invest: https://www.bigissue.com/invest/flexible-social-fund/
The North East Combined Authority (North East CA) was formed on 7 May 2024. It is led by an Elected Mayor and Cabinet and covers a region of approximately two million people across the seven local authority areas of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.
We have decision making powers, and receive funding for: public transport, adult education, housing and place-based regeneration, growth, investment, and skills. The devolution deal signed with Government means billions of additional funding for the region, including an investment fund worth £1.4bn over the next 30 years.
About Big Issue Invest
Big Issue Invest (BII) is the social investment arm of the Big Issue Group. BII offers loans and investment from £20,000 to £4 million to social enterprises and charities across the UK. It currently manages or advises on over £470 million of impact funds. Since its formation in 2005, it has provided over £80 million in impact loans to more than 550 social enterprises. The capital raised by BII is from private sources and not from sales of the Big Issue magazine.
Web: www.bigissue.com/invest X: @bigissueinvest
Facebook: www.facebook.com/bigissueinvest
About Power to Change
Power to Change is the think-do tank that backs community business. We back community business from the ground up. We turn bold ideas into action so communities have the power to change what matters to them.
We know community business works to build stronger communities and better places to live. We’ve seen people create resilient and prosperous local economies when power is in community hands. We also know the barriers that stand in the way of their success.
We’re using our experience to bring partners together to do, test and learn what works. We’re shaping the conditions for community business to thrive.
Power to Change is an organisation with charitable status established in 2015 with a £150m endowment from The National Lottery Community Fund (TNLCF). We received a further £20m from TNLCF in 2021.