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Loan Finance

Loan finance is a relatively new tool for the voluntary and community sector. Loans are not an income source as such, but a financial tool or enabler. Loans may be an option where a large sum of money is needed, to bridge gaps between receipt of grant payments, or to enable projects to move forward during the time taken to raise capital from more traditional fundraising methods.

In this section we provide an introduction to:

Social investment – a background to the market and how loans might be used
How loans can help - case studies demonstrate the various uses for loans and other forms of finance
Sources of Loan Finance – information on, and signposts to, providers serving the voluntary and community sector
Community Development Finance Institutions – catering to under-served areas
Futurebuilders England – tailored investment packages for organisations delivering public services
Programme Related Investment - charities investing in other charities that share their primary purpose

Guides to Loan Finance

The Guide to Loans and Other Forms of Finance, produced by the Sustainable Funding Project for the Finance Hub, provides an introduction to accessing loans and a description of a variety of scenarios in which loans can be used.

Download: Loans and Other Forms of Finance (PDF 850kb) from the Introductory Pack to Funding and Finance.

As new providers are emerging, and current providers increasingly seek to provide finance to the voluntary and community sector, it is worth checking the Community Development Finance Association (CDFA) Finance Finder website for an up-to-date list of loan finance providers.

A Brief Guide to Loan Finance for Trustees was launched in November 2006 at NCVO's Trustees' Conference. Supported by Charity Bank, the publication is designed for trustees considering loan finance for their organisation, or for those who just want to be better informed about the issues. It introduces the benefits, presents some factors that should be though through and signposts to further information.

Download : Brief Guide to Loan Finance for Trustees (pdf 175kb).