Cultural Impact Development Fund

A £3.7 million fund providing small-scale repayable finance to socially-driven arts and cultural organisations. Cultural Impact Development Fund will pioneer the use of financial incentives to drive the achievement of social impact targets in its investment portfolio, making it one of the few impact investment funds with a clear trade-off of financial return for the attainment of social outcomes. The Fund is supported by Access – The Foundation for Social Investment through the Growth Fund programme, with finance being provided by its partners Big Lottery Fund and Big Society Capital.

Key information

Investment window September 2018 to August 2021
Funding available £25,000 to £150, 000
Repayment period 12 to 60 months
Interest rates 5.5% to 8.5%
Fees 1% completion fee
2% per annum, pro rata holding fee
(minimum holding period is 6 months)
No early repayment fee
Cultural Impact Development Fund is administered by Arts & Culture Finance on behalf of Cultural Impact Development Loans Limited, a company registered in England and Wales with company number 11388464.

Fund Objectives

Funding available

Cultural Impact Development Fund offers unsecured loans (and revenue participation agreements, where appropriate) between £25,000 and £150,000 with repayment term of one to five years and interest rates ranging between 5.5% and 8.5%.

Cultural Impact Development Fund will pioneer the use of financial incentives to drive the achievement of social impact targets in its investment portfolio, making it one of the few impact investment funds with a clear trade-off of financial return for the attainment of social outcomes. The financial incentive takes the form of a reduction to the headline interest on a given loan in cases where the total loan term is 36 months or more.

Eligibility Criteria

Your organisation’s primary activity is in arts and culture

If your organisation does not fit within the list below but you think it might still be eligible for investment, please get in touch and speak to a member of our team who would be able to advise you.

Areas of work

  • Music and performing arts
  • Visual arts, including graphic design
  • Film and Broadcasting
  • Literature
  • Combined arts
  • Crafts
  • Fashion design
  • Cultural heritage
  • Architecture
  • Digital arts and culture

Organisation types

  • Arts and cultural venues
  • Museums, libraries and archives
  • Non-venue based organisations (e.g. touring organisations, production companies, festivals, etc.)
  • Sector support organisations (e.g. development agencies, workspace providers, cultural education organisations)
Your organisation is registered and operating in England

We can only work with organisations registered in England and primarily benefiting communities in England. Digital organisations will need to demonstrate their primary audiences are based in England.

We do not make loans to individuals, sole traders, partnerships or unincorporated bodies (unless their partners/members are exclusively corporate bodies).

Your organisation have a clear social mission, reflected in its structure and governance

To be eligible, your organisation has to demonstrate that has a clear social mission. This includes asset-lock and a restriction of the personal gain derived from its work. Charities, community interest companies and community benefit societies with a recognised charitable purpose are eligible for investment. Other incorporated entities, such as companies limited by shares, will be considered based on the strength of their social mission and whether the majority of their profit will be reinvested into that mission.

Your organisation is committed to improving the quality of its social impact practice

Taking part in the Fund’s impact development programme is a requirement for receiving investment. Please see the Impact development section below for more details.

Impact development

As part of the Fund’s criteria for investment, Cultural Impact Development Fund’ Impact Manager will work with applicant organisations in the course of due diligence to improve their social impact management capacity.

In advance of investment being approved, we will support organisations to create the following: (i) a summary of the evidence base for the socially focused activities being undertaken by the organisation; (ii) a theory of change with specific outcomes to be achieved as a result of the activities; (iii) a framework for impact measurement and evaluation; and, (iv) a development & resourcing plan that will specify how, over the lifetime of the investment, impact management policies and processes will be strengthened, in addition to setting clear performance indicators and outcomes targets.

In addition, we will monitor successful organisations’ social impact performance through (at minimum) quarterly reporting, signposting them to further tools and resources.

Contact

For fund-specific enquiries, please contact Trishna Nath.

Investment Committee

Investors and Partners