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STATEMENT HO/EM 330/03 16 March 2003
£2.7 MILLION FUND INVESTING IN COMMUNITY RENEWAL - LEICESTERSHIRE PROJECT TO BENEFIT
The first organisations to benefit from radical new investment and support to deliver long-term improvements to communities were announced by Home Secretary, David Blunkett, today.
The Adventure Capital Fund (ACF) is piloting new forms of financial investment for community enterprise to overcome the constraints that have hindered innovation. This will enable a wider range of organisations to contribute to community renewal on a sustainable basis.
Ten projects that benefit communities are receiving either low interest investment loans or grants of between £50,000 to £300,000. A further 20 projects are receiving smaller £15,000 development grants.
In Leicestershire, Ibstock Community Enterprises Limited will receive investment of £100,000 for a managed workspace/community centre. Located in a former coalfield area, the aim of the project is to provide 365sqm of managed workspace for start-up businesses, together with a training suite and meeting facilities for the local community. The investment will assist in the refurbishment and redevelopment of a former school building for this purpose.
Mr Blunkett said:
"Social enterprise is vital to communities. But securing the necessary finance can be difficult. Too often grants are short-term and unpredictable and commercial loans are expensive and hard to obtain.
"The Adventure Capital Fund aims to demonstrate how these financial constraints can be overcome. Its mix of grants, soft loans and hands on support will provide an innovative boost to the development of social and community enterprise. It will show how community enterprise can blossom and grow, delivering real benefits over the long term.
"This new approach is part of a Government-wide strategy to encourage community enterprise. Our radical plans to create Community Interest Companies, also announced today, will break through some of the legal obstacles to the development of social enterprise."
Barbara Roche, Social Exclusion and Equality Minister in the Office of the Deputy Prime Minister, said:
"Ending poverty in our most deprived areas will only be achieved with a strong community sector playing a pivotal role. Many community and social enterprises are delivering key public services, from housing to childcare, creating jobs and engaging residents in neighbourhood renewal. However, some do not have the resources or expertise to plan for the future, limiting the potential of their positive impact.
"I welcome today''s announcement and the opportunity to contribute £400,000 to promote capacity building and help community enterprises improve their effectiveness in delivering real benefits over the long term."
Roger Brocklehurst, Director, Local Investment Fund, said:
"Community enterprises could be the next big thing: their distinctive combination of self-help and trading for social purpose revitalises communities and transforms service delivery. But most remain undercapitalised - the Adventure Capital Fund is plugging the investment gap that has held so many excellent organisations back."
Along with providing funds, the ACF will supply the schemes with a technical advisor and the pilot is developing and evaluating new assessment processes for selecting suitable organisations to invest in.
Notes to editors:
1. The ACF was launched on 6 December, 2002. Invitations were made to projects that benefit communities to apply for investment grants and loans.
2. The project is receiving £2 million funding from the Active Community Unit (ACU) and £400,000 from the Neighbourhood Renewal Unit (NRU). Up to £300,000 has also been committed by four Regional Development Agencies (RDAs) for additional development grants. The four RDAs are: Yorkshire Forward, East of England, London and East Midlands.
3. Applications have been assessed by an Investment Panel consisting of the fund partners (Local Investment Fund, New Economics Foundation, Development Trusts Association and the Scarman Trust) and the ACU. The Local Investment Fund will oversee how the funds are made available.
4. For further details of the Adventure Capital Fund, please contact: Roger Brocklehurst, Local Investment Fund, 123 Minories, London EC3N 1NT, tel: 020 7680 1028, email: roger.brocklehurst@lif.org.uk, website http://www.lif.org.uk.
5. Community enterprises are independent organisations working in local communities (inner city neighbourhoods, peripheral estates, areas of industrial decline, coastal and market towns, rural districts). They bring about social, economic and environmental renewal through a wide variety of self-help and trading activities - creating wealth for communities and keeping it there. More information is available from ''Fabulous Beasts: Stories of Community Enterprise from the DTA'', Development Trusts Association 2002. For further information about community enterprises in general email: info@dta.org.uk or visit http://www.dta.org.uk.
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