Social enterprise cash available

Sep 10 2008 by Chris Knox, The Journal

THE region’s social enterprises are being urged to apply for finance from a relaunched fund that has awarded £7m to good causes in the UK.

The Community Loan Fund has changed its name to The Social Enterprise Loan Fund (TSELF) as it looks to encourage more North East firms to apply for up to £250,000.

The fund was set up in 1994 with help from the Government and has helped support over 150 community enterprises over the years. It recently received a £1m cash injection from the Government as well as £2m from the UK’s business community to continue its work.

It has now decided to change its name to make its role clearer to local projects after becoming frustrated that not enough firms were applying for a loan.

A spokesman for the TSELF said: “There was so much money that was just sitting there that something had to be done.

“The fund has now rebranded itself and set up a new website to make clear just what it’s about.” The registered charity has helped a host of North East organisations over the years, including Get Hooked on Fishing in Bishop Auckland, which tries to discourage anti-social behaviour by getting youngsters interested in all aspects of angling.

Get Hooked was awarded a £75,000 loan in 2005 by the fund to invest in new facilities, including a cafe and a shop.

Another enterprise which has benefited from the fund is Newcastle-based Rookie Sports, which provides a local hub for community sports and was able to secure a £25,000 loan to buy new equipment.

Rod Jones, North East regional director of the fund, said: “Social enterprises play a vital role in our communities and I am keen to see social enterprises in the North East thrive and prosper.

“The focus of our efforts is to help community businesses grow in a responsible way so that they achieve long- term sustainability, which is not only good for them and their employees, but also for the people they help.”

Interest rates vary on the type of loan applied for, with a £25,000 loan to finance property typically 2.5% to 3.5% over the base rate for 10 years.

Mr Jones added: “However, all the enterprises we help must be able to show that they can afford the loan repayments – the last thing we want to do is cause financial difficulties for an organisation that is providing a service in its community.”

DINAMIC CERAMICS

ONE firm to benefit from funding through TSELF is Ashington-based Dinamic Ceramics, which produces ceramic products featuring distinctive work by regional artists and graphic designers.

The manufacturing process, from transfer design through to final kiln firing, provides training and employment for those with mental health, learning difficulties or physical disabilities.

Money from the fund helped the company to launch in 2006.

TSELF is now working alongside the firm as it plans to expand into four franchise units throughout the UK.

Garry Dawson, managing director at Dinamic Ceramics, said: “TSELF was there when no one else was, and it is only with their help that we really managed to get off the ground and to start to make an impact locally – not only by supporting regional artists and designers, but by providing employment and training opportunities for local people with barriers into employment. We very much appreciate the support we continue to get from TSELF and the valuable work that they do to help social enterprises in the North East.”