Donna Thomas, Fund Manager at social impact investment company Resonance, gives a sneak preview of the new Resonance Bristol SITR Fund which will be launched in May.
Resonance’s first Social Investment Tax Relief Fund will launch in Bristol this month, bringing £5m to the social enterprise sector for the benefit of local communities. The Fund, set up by Resonance, will offer unsecured loans up to a maximum of £275,000 per business; giving social enterprises across the city access to growth capital at a significantly lower cost than they would otherwise be able to access.
Resonance is a social investment company that helps social enterprises to access capital. It does this either by working with individual enterprises to raise investment, or in some cases like here in Bristol, by launching an impact investment fund, which allows larger amounts of investment to target a particular social issue. The Bristol Fund’s aim is dismantling poverty and its focus is on assisting social enterprises that target the root causes by offering the following key solutions:
Having been approached by a number of Bristol Angel Investors wanting to back social enterprises in their city, Resonance scoped and developed the SITR fund with support from wealth manager UBS. Other structures were explored but using SITR in a pooled fund helps drive down the cost of capital, reduces transaction costs, whilst at the same time reducing risk to investors and allowing local people a mechanism to connect directly with growing social enterprises making a real difference in the city.
SITR funds can only be lent to:
This allows Resonance to focus its efforts on finding businesses that have a genuine and sincere impact on the community they support.
All SITR funds are issued with a 3-year capital repayment break, which means for the first three years of the investment the enterprise will only have to pay the interest. This allows the business to concentrate its energy on increasing the impact it delivers, whilst building up a surplus of funds, so that it can comfortably afford to repay the debt when the three-year interest only period comes to an end.
All funds lent under an SITR scheme are unsecured. This is a huge benefit for small social enterprises that often do not have any assets.
All loans in Resonance’s Bristol SITR Fund will be over a six-year term providing between £50,000 and £275,000.
The application process is now open. If you would like to learn more about the Fund or receive an application form please contact:
t/ 0117 214 0325
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Resonance Limited is a company registered in England and Wales no. 04418625
Resonance Impact Investment Limited, a subsidiary of Resonance Limited, is authorized and regulated by the Financial Conduct Authority (FCA). Firm number 588462.
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