An investment fund amounting to €100 million is now available for lending in the form of social finance exclusively to businesses owned and operated by member based groups throughout the country. The new decade looks set to bring early signs of new hope for communities in Ireland which have been rocked in recent months by increases in unemployment, emigration and the potential withdrawal of much needed community services. As communities continue to lament the uncertainty surrounding the potential for assistance from central government in the form of grant aid, compounded by difficulty in accessing credit from the mainstream banking institutions, there would seem to be a light at the end of the tunnel.

It could be argued that this element of the economy, which has for years experienced some of the greatest difficulties in accessing finance, due to the voluntary nature of directors, have now the greatest opportunity to obtain credit of all business sectors, and at an affordable rate. The funds are being made available through the Social Finance Foundation, which rather than dealing directly with communities, invest the funds via experienced social lending organisations (SLOs).

Ulster Community Investment Trust (Ireland) Ltd (UCIT) is one such community based SLO which specialises in the provision of social finance to member based groups. Their profit redistribution system, which re-invests all profits generated by its activities into the fund for onward lending to other groups with a community agenda, justifies the charitable status bestowed upon it.

UCIT was established in 1995 in response to decreasing grant support from government and the difficulties experienced by community organizations in accessing commercial loan facilities. The organization now stands as a key provider of loan finance and support to the social economy sector in Northern Ireland and the Republic of Ireland. Since becoming operational in January 2001, they have approved loans totaling in excess of €30 million to over 200 community organizations.

UCIT Client Relationship Executive, Dónal Traynor, based in Co. Louth, is keen to point out the availability of a further €100 million for lending to community based entities will have a farther reaching effect than many might perceive. “The funding will not just be invested in community halls and childcare services, but also, sports clubs, housing associations, co-operatives and other such entities”. The fund will be used for start-ups as well as those with track records, so long as a genuine argument can be presented on how the recipient intends to repay the money.

Groups interested in learning more about the availability of these funds and how they may be used to kickstart the rejuvenation of various businesses should contact Donal Traynor on 041-6858637 or email donal@ucitltd.com.