Community groups across Ireland can now apply for loans of up to €500,000 from an €8m European fund.
he first tranche of a €20m package will see community and social enterprises benefit from the Council of Europe Development Bank (CEB) financial injection.
Social Finance Foundation (SFF) – a group set up by the Government in 2007 – has received €8m as part of a wider funding agreement, targeted at community and social enterprise projects.
Loans from €10,000 up to €500,000, will be accessible through SFF’s partners.
Brendan Whelan, chief executive of SFF, said: “Our average loan size is €65,000, so this funding from the CEB alone has the potential to help over 100 communities and improve the quality of life of thousands of people.”
The deal was signed last year between SFF and CEB to increase low-cost loan funding to community and social enterprises. The funding will also contribute to the achievement of SFF’s high-growth strategy, which aims to almost double its loan book from €56m to €100m by 2028.
The funding will be targeted at community and voluntary organisations, sports clubs and facilities and social enterprises. A specific objective for the funding is to support environmental and climate-action initiatives in communities.
Most of the beneficiaries of the community funding made available through SFF either could not be financed directly via commercial channels or would be financed with great difficulty, an SFF spokesperson said.
Funding from SFF and Irish banks, in association with social lending partners Clann Credo and Community Finance Ireland, has ensured more than €190m in loans has been provided to groups since 2007.
Governor of CEB Carlo Monticelli said: “We are delighted to partner with the SFF to invigorate Ireland’s social finance sector and generate social impact throughout local communities across the country.”
