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Third Sector Investment Fund tries again to structure social-venture loans

ImpactAlpha Sep 19, 2017
This article is deemed a must-read by one or more of our expert collaborators.
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Big Ben
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A £30 million loan fund has been reconstructed because of lack of interest from the small and medium-sized social ventures who were targeted as borrowers.

We underestimated how hard it was to get deals done

The Third Sector Loan Fund, was launched in 2014 by Social and Sustainable Capital and backed by Big Society Capital, Santander Bank, and Social Investment Business, to encourage commercial banks to finance charities and social enterprises.

Only 10 of 350 applications to the fund have been approved, and only two deals completed.

The problems: lending terms, lack of collaboration between investor and investee, and unclear deal-making requirements, along with austerity measures in the U.K. that have cut revenues from public sources.

Read the source article at ImpactAlpha

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Jessica Pothering is a writer at ImpactAlpha and editor at Demand by ASME.

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Impact Investing is a complex topic, and others found these selections from the Impact Giving archive from Giving Compass to be good resources.

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    Three Ways Investors Can Help Build a Better Food Future

    Americans’ hunger for healthier, more sustainable food options continues to grow, and a good food marketplace is maturing to meet it. Donors and impact investors can help grow that market, and thereby a better food system for all. For the last two years, I’ve argued in multiple venues that one of the keys to improving Americans’ health, cleaning up our environment, and creating a more equitable society is cultivating a good food system—one that makes delicious, nutritious, sustainably produced food accessible to all. I’ve also argued that creating such a system will require both traditional grant making and the use of financial investments that feed good food businesses and help grow a better food marketplace even as they generate returns. Along the way, I’ve discovered many opportunities for donors and investors to get involved and help build a better food future. Here are three of them.


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