More and more community enterprises are realising that grants cannot fully meet all of their funding needs. It is now becoming necessary for them to generate their own capital in order to fulfil both development and cash flow requirements. Consequently loan funding, and in particular Social Finance, is becoming a primary tool in satisfying these needs.

Ulster Community Investment Trust Ltd (UCIT) was established in 1995 in response to decreasing grant support from government and the difficulties experienced by community organisations in accessing commercial loan facilities. The organisation now stands as the key provider of social finance, free advice, business support and mentoring to the social economy sector in Northern Ireland and the Republic of Ireland.

As a registered charity, all profits generated by UCIT are recycled for reinvestment into the community and social enterprise sector.

• Social Finance Foundation (www.sff.ie):

In July 2006, the Government approved the implementation of the Social Finance Initiative. Announced by the then Minister of Finance in Budget 2006, it established a not-for-profit company (limited by guarantee and having no share capital) to act as a wholesale supplier of funding for social finance.

Social finance is about the availability of loan finance at affordable interest rates to community-based projects and micro-enterprises. These projects, which generate both a social benefit as well as a financial return, often experience difficulties in accessing loans from mainstream lending institutions. In January 2007, the company was incorporated and the Board appointed. Seed capital of €25m was provided by the Banking Industry through the Irish Banking Federation (IBF). A further €72 million worth of investment has since been negotiated.

SFF as a wholesale lender in the social finance arena operates through Social Lending Organisations (SLO's) that it funds to interface with the borrowers.