Deadline: 30-Sep-2026
The Somerset Social Investment Programme (SSIP) provides blended finance to eligible social enterprises and charities through a combination of an unsecured loan and a grant. The programme helps organisations grow earned income, invest in equipment or property, access working capital, and overcome short-term funding challenges.
Eligible organisations can apply for funding between £10,000 and £40,000. The funding package typically consists of two-thirds loan funding and one-third grant funding, with loans offered at a fixed interest rate and repayable over five years.
What Is the Somerset Social Investment Programme?
The Somerset Social Investment Programme (SSIP) is a social finance initiative designed to help social enterprises and charities strengthen and expand their trading activities.
Unlike traditional grants, SSIP provides blended finance, combining:
- A repayable unsecured loan
- A non-repayable grant
This approach enables organisations to access larger amounts of funding while encouraging sustainable income generation through trading activities.
The programme focuses on helping organisations increase earned income from selling products or services rather than relying solely on donations or grant funding.
What Is Blended Finance?
Blended finance combines different types of funding into a single support package.
Under the Somerset Social Investment Programme, funding usually consists of:
- Two parts unsecured loan
- One part grant
For example:
- £30,000 funding package may include:
- £20,000 loan
- £10,000 grant
The final funding structure is determined based on the individual application and investment proposal.
Benefits of Blended Finance
Blended finance offers several advantages:
- Reduces the amount that must be repaid
- Provides access to larger funding packages
- Supports sustainable business growth
- Helps organisations secure investment where traditional lenders may not participate
- Encourages long-term financial resilience
Funding Available
How Much Funding Can Organisations Apply For?
Eligible organisations can apply for:
- Minimum funding: £10,000
- Maximum funding: £40,000
Funding is provided as a combination of grant and loan support.
Funding Structure
Typically:
- Approximately two-thirds loan funding
- Approximately one-third grant funding
However, the exact split may vary depending on the project and assessment outcome.
What Can the Funding Be Used For?
The programme supports investment activities that strengthen trading operations and increase organisational sustainability.
Equipment Purchases
Funding may be used to purchase:
- Machinery
- Tools
- Specialist equipment
- Production equipment
- Operational assets
Property Investment
Eligible organisations may use funding for:
- Property acquisition
- Premises improvements
- Facilities that support trading activities
Working Capital During Growth
The programme can provide working capital to help organisations manage:
- Expansion costs
- Increased demand
- Cash flow pressures during growth
Bridging Short-Term Funding Gaps
Funding may help organisations overcome temporary financial challenges while maintaining operations and growth plans.
Early-Stage Business Model Development
Although start-up costs are not eligible, the programme can support organisations at an earlier stage of growth where:
- The business model has been tested
- Trading potential has been demonstrated
- Other lenders may be unwilling to provide finance
What Cannot Be Funded?
Start-Up Costs
The programme does not fund:
- New business start-up expenses
- Untested business ideas
- Organisations without an established trading model
General Running Costs
The grant element cannot be used for:
- Day-to-day operational expenses
- Routine administration costs
- General organisational overheads
Grant funding must be used specifically for the approved investment project.
Loan Terms and Repayment
Loan Type
The loan is:
- Unsecured
- Fixed interest rate
- Repayable over five years
What Does Unsecured Mean?
An unsecured loan means:
- No property or organisational assets are used as security
- Assets are not at risk as collateral
- Organisations do not need to pledge property or equipment to access funding
Interest Rate
The loan normally carries:
- Fixed interest rate of 6%
Repayment Period
Loans are generally repaid over:
- Five years
Interest-Only Period
In many cases:
- The first year involves interest-only repayments
This allows organisations time to implement their investment plans before making full repayments.
Administrative Fee
An additional:
- 1% administration fee
is added to the total loan amount owed.
Who Is Eligible?
Applicants must meet specific organisational and financial requirements.
Eligible Organisations
Applicants must be:
- Social enterprises
- Charities
- Incorporated organisations
Ineligible Organisations
The following cannot apply:
- Unincorporated community groups
- Informal organisations
- Groups without legal incorporation
Financial Eligibility Requirements
Applicants must:
Have Filed Annual Accounts
The organisation must have submitted:
- At least one set of annual accounts
Meet Income Requirements
Annual income must be:
- At least double the amount requested
For example:
- Requesting £20,000 requires a minimum income of £40,000
Demonstrate Business Viability
Applicants must provide evidence showing:
- A tested business model
- Trading potential
- Financial sustainability
- Ability to repay the loan
Supporting documentation may include:
- Cash flow forecasts
- Financial statements
- Business plans
- Trading records
Minimum Standards Requirements
Organisations must also satisfy minimum standards covering:
Funding Eligibility
Applicants must meet all programme requirements and conditions.
Organisational Management
The organisation must demonstrate effective governance and management structures.
Financial Management
Applicants must show:
- Sound financial controls
- Accurate record keeping
- Responsible financial oversight
Safeguarding Standards
Appropriate safeguarding policies and procedures must be in place where applicable.
Why This Programme Matters
Many social enterprises and charities struggle to secure investment for growth because traditional lenders often view social-purpose organisations as higher-risk borrowers.
The Somerset Social Investment Programme helps bridge this gap by providing:
- Accessible finance
- Reduced repayment burden through grant support
- Unsecured lending
- Growth capital for trading activities
- Funding for sustainable organisational development
The programme supports organisations in becoming more financially independent while increasing their social impact.
How to Apply for the Somerset Social Investment Programme
Step 1: Confirm Organisational Eligibility
Ensure your organisation:
- Is incorporated
- Has filed annual accounts
- Meets income requirements
- Operates as a social enterprise or charity
Step 2: Develop Your Investment Proposal
Clearly explain:
- What funding is needed for
- How it will strengthen trading activities
- Expected financial outcomes
- Community or social benefits
Step 3: Prepare Financial Evidence
Gather documentation demonstrating:
Step 4: Create Financial Forecasts
Provide realistic projections showing:
- Revenue growth
- Cash flow expectations
- Sustainability of the investment
Step 5: Submit Your Application
Complete all required application forms and provide supporting documentation.
Step 6: Funding Assessment
Applications will be assessed based on:
- Organisational strength
- Financial viability
- Trading potential
- Ability to repay the loan
- Overall impact of the investment
Common Application Mistakes to Avoid
Applying as an Unincorporated Group
Only incorporated organisations are eligible.
Requesting Funding for Start-Up Costs
The programme is designed for organisations with an established business model.
Failing to Demonstrate Loan Repayment Ability
Applicants must show clear evidence of future income and repayment capacity.
Insufficient Financial Information
Incomplete forecasts or financial records may weaken an application.
Using Grant Funding for General Operating Costs
The grant element must support the approved investment project.
Overestimating Income Projections
Financial forecasts should be realistic and evidence-based.
Frequently Asked Questions (FAQ)
How much funding is available through SSIP?
Eligible organisations can apply for between £10,000 and £40,000 in blended finance.
What is blended finance?
Blended finance combines a repayable loan with a non-repayable grant, reducing the amount an organisation needs to repay.
Is the loan secured against organisational assets?
No. The loan is unsecured, meaning organisational assets are not used as collateral.
What interest rate applies to the loan?
The loan normally carries a fixed interest rate of 6%.
Can the funding be used for start-up costs?
No. Start-up expenses and untested business ideas are not eligible.
Can unincorporated community groups apply?
No. Applicants must be incorporated organisations.
What financial evidence is required?
Applicants must provide annual accounts, financial forecasts, and evidence showing a viable trading model and ability to repay the loan.
Key Takeaways
- The Somerset Social Investment Programme provides blended finance for social enterprises and charities.
- Funding ranges from £10,000 to £40,000.
- Support combines an unsecured loan with a non-repayable grant.
- Funding can be used for equipment, property, working capital, and growth-related investments.
- Loans are typically offered at a fixed interest rate of 6% and repaid over five years.
- Applicants must be incorporated organisations with at least one set of annual accounts.
- Organisations must demonstrate a viable trading model and ability to repay the loan.
Conclusion
The Somerset Social Investment Programme offers a valuable funding opportunity for charities and social enterprises seeking to expand their trading activities and strengthen long-term sustainability. By combining grant funding with an unsecured loan, the programme provides flexible investment support that can help organisations purchase assets, improve cash flow, and grow earned income. Applicants with a strong business case, proven trading activity, and realistic financial forecasts are well positioned to benefit from this blended finance programme.
For more information, visit Somerset Community Foundation.
