Borrowing from us
We lend to organisations that are owned and democratically controlled by their members, who are usually either employees, customers or members of a community.
Flexible loans from £10,000 to £150,000 with no personal guarantees for:
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Worker co-operatives
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Housing co-operatives
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Community Businesses of all shapes and sizes
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Employee-owned businesses
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Social enterprises and charities with democratic control.
We welcome applications from…
New enterprises
We are happy to consider loan applications from people and groups who are just about to start a new co-operative or community business We can sometimes provide finance and help access grants and support.
Workers’ co-operatives
We have over 50 years’ experience of lending to workers’ co-operatives, ranging from 2 members to over 100. We better understand the particular dynamics of a co-operative working environment. than most financial advisers and lenders.
Employee buyouts
We are pleased to help employees buy their businesses and convert them to democratic employee-owned enterprises. We can often help when a private owner wants to retire, a company wants to sell or close part of its operation or employees want to take over an existing business or service.
Housing co-operatives
We can lend up to £150,000 from our own funds and we work with other lenders to provide much larger loans. Together we can offer a unique financial package to help housing co-operatives buy property.
Renewable energy co-operatives
We are keen to support enterprises involved in renewable energy, energy efficiency and retrofit.
Community owned shops, pubs & facilities
We welcome loan applications from people who want to set up and run community-owned shops, pubs, hubs and other local facilities. In recent years we’ve helped over 150 community-owned businesses start up, expand or build new premises. We also support communities that seek to raise investment by community share issue.
Eligibility & Terms
We only lend to employee or community-owned enterprises, including co-operatives, community businesses, development trusts and businesses developed from the charitable and voluntary sector. All must have an appropriate form of employee or community ownership and must be democratically controlled by their members.
We only lend to incorporated bodies such as registered companies and community benefit societies.
We invest in enterprises that we believe are likely to be economically viable. Each enterprise must be able to demonstrate the ability to pay interest and repay the capital on any agreed loan finance. You must send a detailed business plan with your loan application.
Term, size, rates, fees & security
We can arrange flexible loan packages to suit different situations. We believe that successful lending requires more than just sympathetic finance.
Our rates are competitive, and we take into account the individual circumstances of each borrower. Unlike some lenders we don’t require personal guarantees, and our profits are reinvested to enable us to continue our work.
We can also replace existing finance packages. All our borrowers have the assurance that comes from receiving support from an organisation that’s democratically owned and controlled by its borrower and investor members.
We can offer:
Term
There is no set lending term, we typically can offer terms between 2 to 20 years depending on security. As far as is possible loans will be tailored to the needs of the enterprise and the capacity to make repayments.
Loan size
We can typically lend between £10,000 to £150,000. If you require more we can help broker packages with other ethical and social investment lenders and sometimes have blended grant and loan packages available.
Interest
Our interest rates are competitive and currently range from 6% to 10% based upon the individual circumstances of the application. Unlike some lenders, we charge interest on the reducing balance over time, not as a flat rate on the amount drawn down.
Fees
We make only one charge to borrowers other than that of interest. This is a charge for the loan appraisal and arrangement, which also contributes to the cost of business support that we normally provide throughout the term of the loan. This fee normally varies between 1% and 2% of the sum advanced, depending on the work involved. The minimum fee is £500. The fee is only paid by successful applicants.
There are no annual facility or review fees, no charges for monitoring visits, letters or phone calls.
Security
We do not take personal guarantees on loans but will seek to secure our lending against the assets of the borrowing organisation where possible. However, your ability to provide security cover is not the main criteria upon which the lending decision is made.
Ongoing support
We offer ongoing support to our borrowers throughout the term of the loan as part of the funding package – there is no additional charge for this service. We also facilitate networking with other similar businesses throughout the UK.
Membership
Co-operative & Community Finance and all the funds we manage support the principles of mutuality. Borrowers from our own funds are required to become members.
Our funds
More Than a Pub
As a legacy to the More Than a Pub programme we partnered on with Plunkett Foundation and funded by Power to Change and the Ministry of Housing, Communities & Local Government, we have a discounted package as part of legacy support for the Community Pub sector.
Loan finance of between £75,000 to £150,000 is available to Community Owned Pubs, available at a discounted rate of interest for members of the Plunkett Foundation, length of term ranges from five to twenty years. Please contact us for the full terms and conditions, and to discuss how we can support your Community Owned Pub venture.
Terms and Conditions:
- Community Owned Pubs only – Plunkett Members
- Flexible terms from 5 to 20 years
- Amounts available between £75,000 and £150,000
- Discounted Interest rate*
- Maximum Loan To Value (LTV) 70%
- Secured against property
- Low arrangement fees*
* For full details on the rate charged and fees payable please contact us directly.
Energy Resilience Fund
£15m Energy Resilience Fund for charities and social enterprises in England
Charities and social enterprises, especially those based in disadvantaged areas, struggle to find investment for energy resilience and to make the transition to Net Zero. To help organisations access the right funding and improve their energy efficiency, Social Investment Business has joined up with Big Issue Invest, Charity Bank, Co-operative and Community Finance, GMCVO, Groundwork UK, Key Fund, Resonance, The Architectural Heritage Fund and The Ubele Initiative to launch the Energy Resilience Fund. It’s a fund worth £15m funded by Better Society Capital, Access – The Foundation for Social Investment, and Social Investment Business Foundation.
The new Energy Resilience Fund (ERF) provides a blended funding package of loan (60%) and grant (40%) to bolster the energy resilience of eligible charities and social enterprises in England. The ERF succeeds the pilot Energy Resilience Fund managed by Key Fund.
Eligible organisations can apply for blended funding of between £25,000 and £250,000 to install energy saving measures or energy generation technology. The ERF could pay for a range of energy efficiency measures, for example, energy efficient lighting systems, insulation upgrades, glazing upgrades, small scale wind turbines, solar PV panel systems, battery storage systems, solar water heating systems, heat pumps and electric vehicles. The fund could also be used to pay for related costs including capital, labour and project management costs, revenue losses and contingency.
The ERF opened to applications on 6 November 2024. Full details about the ERF and eligibility criteria are available via the Social Investment Business website.
For more information contact:
Tim Coomer, Business Development Manager
tim@coopfinance.coop / 07342 674673
or
Kevin Lloyd-Evans, Lending and Relationship Manager
kevin@coopfinance.coop / 07506 336535
Community Builders Fund
Community Builders Fund for impact-led community co-operatives and enterprises across England, Wales, and Scotland.
The Community Builders Fund, previously the Recovery Loan Fund, supports impact-led community co-operatives and enterprises across England, Wales, and Scotland with flexible loans of £100k to £1.5m to help them grow and build long-term resilience.
Building on the success of the Recovery Loan Fund, this £17m fund, delivered by Social Investment Business (SIB) brings together five new investor partners including us, Co-operative and Community Finance. Together we aim to ensure investment reaches organisations tackling some of our most pressing social and environmental challenges.
For more information – including full eligibility criteria and how to apply – visit Community Builders Fund | Funding | Social Investment Business
