Can someone here help me unpack social impact financing or what is also called a social loan in the context of this article.
Social impact financing is a range of approaches that help fund social causes by bringing new financial products beyond just giving donations and hoping for the best.
A social loan essentially provides a low interest loan to say a social enterprise that explicitly seeks to produce a measurable social outcome in addition to meeting basic financial obligations.
An example is a social housing trust that exists to provide more disability housing.
My question is what’s the dynamic with the various players?
I can see on one end is a “social investor” who is willing to provide/invest capital for a below market earning rate (in exchange for knowing the social outcomes are occurring).
And at the other is the social enterprise obtaining the funds.
But what’s the dynamic in the middle?
I’m trying to access these sorts of funds so trying to understand better the impact / neutrality or otherwise of various parties involved in manufacturing a fairly niche social loan product.
Social impact financing is a range of approaches that help fund social causes by bringing new financial products beyond just giving donations and hoping for the best.
A social loan essentially provides a low interest loan to say a social enterprise that explicitly seeks to produce a measurable social outcome in addition to meeting basic financial obligations.
An example is a social housing trust that exists to provide more disability housing.
My question is what’s the dynamic with the various players? I can see on one end is a “social investor” who is willing to provide/invest capital for a below market earning rate (in exchange for knowing the social outcomes are occurring).
And at the other is the social enterprise obtaining the funds. But what’s the dynamic in the middle?
I’m trying to access these sorts of funds so trying to understand better the impact / neutrality or otherwise of various parties involved in manufacturing a fairly niche social loan product.