Community Builders Fund

The Community Builders Fund provides loans of between £100k and £1.5m to UK charities and social enterprises based in England, Wales and Scotland. The fund is supported by the Government guarantee scheme – Growth Guarantee Scheme. The fund was established to make it easier for charities and social enterprises to benefit from the Government's guarantee scheme, with initial investment from SIB and the Fusion21 Foundation. Additional investors include The Archbishop's Council, Big Society Capital, MFS Investment Management, and Treebeard Trust, taking funds raised to date to £21.5m. The fund is designed for UK charities and social enterprises improving people's lives or the environment they live in. Loans range from £100k to £1.5m (or from £50k for organizations in Wales and Scotland) with repayment terms of 1-6 years at a fixed 7.9% per annum interest rate. The fund offers flexible repayment options including an optional capital repayment holiday of up to 12 months and no early pre-payment fees. Eligible organizations must be legally constituted and registered charities or social enterprises based in England, Wales, or Scotland, operating for at least two years, with minimum turnover of £400k in the last financial year (or £200k if based in Scotland or Wales). Organizations must be primarily constituted for social benefit and not subject to any insolvency proceedings. SIB works with experienced social investor partners to deliver the fund, including Big Issue Invest, Charity Bank, Co-operative & Community Finance, and others.