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.
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