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).

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.

SFF had its second fiscal year end at 30th June 2009, covering a 13 month period. The second Annual Report on its work to date is featured on this web site here.

NEWS RELEASE - 30 Oct 2009

Community-based projects and Micro-
enterprises benefit

The inaugural Stakeholders' Meeting of the Social Finance Foundation heard today in Dublin that, to date, loans totalling €17 million have been approved in support of a host of community-based projects all over the country - including community centres, crèche and sports facilities, sheltered housing etc.. Loans have also been made to micro-enterprises to become established and generate employment. The deployment of the funds is shown in the social dimensions section of the site - click here for more.

The Minister of State for Science, Technology, Innovation and Natural Resources, Mr Conor Lenihan, T.D. opened the meeting and emphasised the importance of social finance particularly in these challenging times.The Chairman, Peter Quinn, presented on the progress to date of the Foundation and on its future strategy. Hugh Harkin, Executive Director of Vantastic, presented a case study on how social finance has supported his work in providing transport for mobility impaired persons.

The full transcript of the Minister's speech, the press release, the Chairman's Presentation and the Vantastic case study - can be downloaded here.

The updated annual report for year end 30th June 2009 is available here.

Community-based projects to benefit and
Micro-enterprises to receive support

The future funding requirements of the Social Finance Foundation have been secured by means of a new funding arrangement put in place by the country’s retail banks. This will see €72 million being provided over the coming years by the banks at a discounted rate of interest, enabling the Foundation to lend onward at competitive rates in support of social and community projects and micro-enterprises all over the country.

The Foundation has just signed a new, 12-year loan agreement with the country’s retail banks (listed left) which will meet its future funding requirements. The length of the funding agreement with the Banks is tailored to match the long-term lending by the Foundation, which is a feature of social finance.