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 The National Lottery Community 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

  • Architecture
  • Combined arts
  • Crafts
  • Creative technology
  • Dance
  • Fashion design
  • Film and broadcasting
  • Graphic design
  • Heritage
  • Literature
  • Museum, library or archive
  • Music
  • Sector support organisation
  • Theatre and performance
  • Visual arts
  • Workspace provider

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 it 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 works with people and communities within our scope of approved beneficiaries

To be eligible, your organisation should work with people and communities who fall within our scope of approved beneficiaries. This means that you must be able to demonstrate your commitment to reaching and supporting the needs of these beneficiaries, although your offer may have a wider remit beyond these groups. If your organisation’s beneficiaries do not fit within the list below but you think your organisation may still be eligible for investment, please get in touch and speak to a member of our team, who will be able to advise you.

Approved beneficiaries

  • People experiencing long-term unemployment
  • Homeless people
  • People living in poverty and/or financial exclusion
  • People with addiction issues
  • People with long-term health conditions/life-threatening or terminal illness
  • People with learning disabilities
  • People with mental health needs
  • People with physical disabilities or sensory impairments
  • Voluntary carers
  • Vulnerable parents
  • Vulnerable children (including looked-after children)
  • Vulnerable young people and NEETs
  • Older people (including people with dementia)
  • Ex/offenders
  • People who have experienced crime or abuse
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.

What we don't fund
  • Individuals, sole traders, and unregistered partnerships
  • Organisations that promote party political or religious beliefs
  • Organisations that seek to substitute services already funded by Exchequer expenditure
  • Organisations whose governing document does not allow it to carry out the proposed project or to take on investment
  • Organisations that are unable to evidence a source of repayment for the investment
  • Organisations that are insolvent
  • Organisations that have already received £150,000 investment from another Growth Fund, unless a portion of that investment has already been repaid
  • Organisations that are seeking a total investment of more than £150,000 for a single project, even if the excess above £150,000 is funded by a third-party funder
  • Organisations that would be in breach of State Aid requirements as a result of the investment

If you are not sure whether any of these exclusions apply to your organisation, please get in touch and speak with a member of our team, who will be able to advise you.

Impact development

As part of the Fund’s criteria for investment, Cultural Impact Development Fund’s 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:

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

Reporting requirements

We ask all CIDF investees to report to us on a quarterly basis to help us monitor progress toward their financial, operating, and social impact goals. Each reporting meeting is an opportunity to discuss progress as well as challenges, and to draw on support from the CIDF team to help manage the investment and its impact. 

Reporting meetings may take place either over the phone or in person, and each reporting meeting is expected to last approximately one hour. At each quarterly reporting interval, investees may be asked to provide the following documentation (as relevant):

Additionally, we ask investees to provide the following social impact reporting on an annual basis:

More detailed guidance about our reporting requirements is provided directly to investees at the start of their investment.

Contact

For fund-specific enquiries, please contact Trishna Nath.

Investment Committee

Investors and Partners