European Regional Development Fund - ERDF

The European Regional Development Fund (ERDF) aims to increase the number of social enterprises in the Yorkshire and Humber Region that can access the finance that they need to develop and grow. This fund is specifically designed for organizations with clear social aims and objectives that are not for private profit, have asset-locked structures, and maintain clear policies or restrictions around profit distribution, requiring at least 51% of profits to be reinvested for social aims and objectives. The fund provides loans of up to £300,000 with a maximum term of 10 years. Interest is charged at a 6.5% flat rate, and there is a 2% arrangement fee. This financing is intended to support social enterprises that have traditionally been excluded from mainstream banking and building society funding. The program is funded by Northern Powerhouse and the European Union, and is administered by Key Fund, which invests in community and social enterprises in the Yorkshire and Humber region. The fund aims to help these organizations develop, grow, and achieve their social objectives while providing sustainable financial support.