Community Finance at Work

Committee members of Shotley Kidzone felt like they’d finally found the last piece of a jigsaw puzzle when they found out about Foundation East’s Enterprise Loans last year. They had spent two years raising funds for a much needed portacabin. Twice they thought they’d made it. Twice the unexpected happened. First, a grant fell through. Second, a supplier pulled out.

'After several emergency meetings we realised drastic action was needed. The problem was twofold. Grants we had in place could not be released until the total amount needed had been raised. Additionally, our original plan to purchase a secondhand portacabin had fallen through and the only way to secure a portacabin of the rather unusual size we needed was to buy new. This meant more fund raising, quickly!' explained Mel Faux, a committee member of Shotley Kidzone.

So, Mel went back to the drawing board and began applying for further grants to make up the £16,000 deficit. As she started this arduous task she became aware, through an advertisement in a local magazine, of Foundation East and our enterprise loans. Mel contacted us immediately.

‘Foundation East was very helpful. A business development manager came to see us outside normal hours. She was extremely supportive and helpful, quickly confirming that Foundation East could provide the missing £5,000 allowing the rest of the funds to be released. Without this loan our playgroup could not have survived,’ she advised.

Such use of enterprise loans to fill funding gaps in order to release grants could become commonplace, once more social enterprises are aware of the kind of finance schemes available.

Many social enterprises and community groups are struggling to find that last piece of the jigsaw yet will not consider loans, often believing that trustees will have to put up personal guarantees, or that they do not have the expertise to fill in the application forms.

Foundation East does not require personal guarantees or official applications to be completed. Once we know that you have a genuine need we send one of our experienced business development managers to see you. They will not only do the paperwork but provide advice on other sources of finance too.

Though using Foundation East’s Enterprise Loans to fill funding gaps in order to release funds raised elsewhere is normal and expected, settling loans within one month is not. The early settlement of Shotley Kidzone’s loan has been possible thanks to a retrospective grant made by Shotley Parish Council

The fact that Shotley Parish Council awarded the money to the playgroup is testament to the vision, commitment and energy exuded by its trustees, providing a shining example of what is possible to other social enterprises.

See www.myshotley.com/shotley-kidzone.html