An independent charity set up by NatWest to support social enterprises to access finance has reached another milestone in supporting job creation and economic opportunity by doubling its lending to over £2 million in 2023.
Last year NatWest Social and Community Capital (S&CC) lent £2.27m to 12 businesses, creating and protecting 118 existing roles, while expanding its reach to support over 14,000 people in communities across the UK. Over half of the businesses (57%) which received loans deliver impact in the top 10% most deprived areas of England and Scotland.
S&CC, which was set up 25 years ago by NatWest, specialises in offering lending to social enterprises, charities and community groups unable to access finance from mainstream lenders. It works closely with these organisations to provide tailored financial solutions, helping them overcome obstacles and maximise their impact.
One of the businesses that has benefitted from S&CC’s support is bemix, a social enterprise that supports people in Kent and Medway with learning difficulties and/or autism to move into the workplace. bemix was able to access growth funding from S&CC to expand its services and build new premises in Chatham, Kent.
Matt Clifton, bemix’s CEO, said: “We were looking to expand bemix’s services in Kent to help more people with learning difficulties and autism move from education into the workplace. The problem we faced was that traditional education funding is not designed to support quick scaling. S&CC’s financial support was vital in helping bemix to maintain a healthy cashflow while building our new premises in Chatham.”
In 2023 Social and Community Capital also supported the Aberdeenshire-based Huntly Development Trust to access a VAT bridging loan. This financial assistance allowed HDT to manage its cash flow effectively during the extensive refurbishment period of Number 30 - a £3.5m project aimed at creating jobs, volunteering opportunities, and leisure activities in the heart of Huntly.
Carolyn Powell, Joint General Manager at HDT, said: “The VAT bridging finance was crucial in protecting our organisation's financial stability during the refurbishment. It meant we didn’t have to resort to fixed, inflexible loans. Since this loan was tailored for a specific need, we were free of any financial encumbrances once the project was completed. This flexibility helped us plan for the future while maintaining our financial balance.”
The transformation of Number 30 is set to significantly benefit the Huntly community. The ground floor will house a large café, retail space, and a 60-seater cinema, while the first floor will feature split-level co-working spaces, a beautiful gallery, and a learning and training area. This multifunctional space will serve as a vital community hub, the only one of its kind for over 40 miles.
Victoria Papworth, CEO of NatWest Social and Community Capital, said: “We’re thrilled to have doubled our lending to social enterprises last year, boosting employment and economic opportunity across the UK. Over half our investees* are small businesses with fewer than 10 employees, and 80% of them deliver impact locally or regionally. Thanks to a generous £1.5 million donation from NatWest this year, we have been able to champion the work that these businesses do, so they can continue to make a difference to those that need it most.”
