ImpactAlpha, December 3 – Four large housing associations in the U.K. have launched a loan fund to boost community services offered by social enterprises and charities. Big Lottery Fund and Big Society Capital have seeded the fund with £3 million ($3.8 million).
Housing associations are non-profits that offer affordable and community housing for low-income and underserved people. Clarion Housing Group, L&Q, Orbit and Peabody are among the U.K.’s largest such organizations, and have partnered on the three-year loan fund, called the Community Impact Partnership.
The fund will issue unsecured loans and grants of up to £150,000. The fund’s founding associations will focus on lending to organizations they partner with in the communities they serve, namely small and medium-sized businesses that provide services like cleaning, catering, and landscaping.
The Community Impact Partnership will look to raise additional capital from outside investors.