Irish Rural Link Presentation

June 2011

In July 2006, the Government approved the implementation of the Social Finance Initiative.

A not-for-profit company (limited by guarantee and having no share capital)

A wholesale supplier of funding for social finance

Operates through Social Lending Organisations (SLO's) that it Operates through Social Lending Organisations (SLO's) that it funds to interface with the borrowers. (E.g Clann Credo) funds to interface with the borrowers. (E.g Clann Credo)

“Social Finance has as its prime purpose, care of people and

communities” – Sr

Magdalen Fogarty,

Founder Clann Credo

Background• Formed 1996• Not-for-profit - Registered Charity• Over €30M invested in over 250

projects • Fund size €15M • Funded by Charitable Organisations

and Foundations by way of Investment (not grants)

What is Social Finance?

Social Return + Capacity to Repay

Access to Finance for:

- Community & Voluntary Sector - Charitable Organisations- Community Businesses- Social Enterprises

Projects Supported• Social Housing• Community & Enterprise Centres• Sports Facilities (including

GAA/soccer clubs)• Elder and Youth Care• Environmental Projects• Community Arts/ Drama• Accessible / Rural Transport

Social Dividend

• Property purchase, construction or refurbishment

• Working Capital Loans• Short Term Bridging loans against

future Fundraising Income or LEADER grants.

• Matching Funding e.g. 25% of project funding under LEADER grant funded project.

• Loans to purchase equipment and vehicles

Loan PurposeLoan Purpose

Financial Products

• Amounts financed from €5,000 - €1,000,000

• Interest rates in region of 5% p.a.• Collateral may be taken as security

(if available)• Terms of up to 15 years• Capital Repayment Moratoriums

available for an initial period of up to 2 years

Clare Family Resource Centre

• Community childcare facility Community childcare facility providing affordable quality providing affordable quality service.service.• Project had good track record over Project had good track record over a number of years.a number of years.• New Centre opened in late 2008.New Centre opened in late 2008.• Centre part financed under NCIP Centre part financed under NCIP Childcare Program.Childcare Program.• Clann Credo provided balance of Clann Credo provided balance of capital capital finance towards overall funding finance towards overall funding cost.cost.• Repayments funded from fees / Repayments funded from fees / grants grants

Lisdoonvarna Fáilte

• Integrated leisure, recreational and community facilities.

• Involves GAA, astro turf, playground, childcare and community hall.

• CCL provided bridging and term facilities.

Kilkee Housing Ass.

• Development of 29 social housing units

• Clann Credo provide part of capital cost.

• Repayment from

rental income

Difference from Mainstream Financial Providers

•Mission & Purpose•Value Based Use of Financial Capital

•Attempting to meet the needs of projects

Difference from Mainstream Financial Providers

•Flexibility in devising product for client

•Access to other grant / loan funding

•Track Record of almost 15 Years•Networks of Customers

Difference from Mainstream Financial Providers

• ‘Unbankable’ Loans•No personal guarantees•Transparency of Relationships•Still lending !!!!!

Thank You

Further Information•http://www.sff.ie/•www.clanncredo.ie •http://www.ucitltd.com/ •www.socialenterprise.ie