3 August 2026

Beyond grants: Understanding social investment for Somerset charities

Blog post by Amelia Thompson, our Senior Programmes Manager

We’ve been offering social investment for almost 10 years now, but for many groups we speak to, it can feel like a daunting concept that doesn’t always fit into a traditional fundraising strategy. 

Social investment is simply a flexible form of finance that helps charities and social enterprises build a more sustainable income, often through trading. This blog will answer the questions we hear most about our social investment offer, the support that comes with it, and how repayment works. 

What is social investment? 

At its core, social investment is repayable finance. It can take different forms, including secured and unsecured loans, bonds, community shares and equity. 

Our own offer is simple: we lend money to Somerset-based organisations as an unsecured loan, meaning we don’t take any security from you. You repay monthly, with fixed interest of 6% over 60 months. 

Because the money is repayable, we can recycle it – reinvesting it in new organisations once it comes back to us. Your repayments help fund the next organisation to benefit. 

When might it be useful? 

Social investment works best when you’ve already tested your idea. Have you tried selling something, seen there’s demand, but need finance to scale it up? That’s exactly where social investment can help. 

Our offer is designed for organisations growing or developing a trading model to raise their own income, becoming more sustainable and less reliant on funding programmes. 

You can use the loan as working capital (paying staff or building capacity in your team), as capital (buying goods or equipment), or as a short-term bridging loan. 

Our loans have funded retail staff, coffee machines, seed counters, solar panels, and even shelves – if it will help your long-term growth, social investment can help you get there. 

When it might not be right 

Our social investment offer is a form of credit, so we need to be confident that lending is the right decision for your organisation. 

You’ll need an incorporated legal status, such as a CIO or CIC – we’re not able to lend to individuals, only to organisations with recognised legal status. 

If your organisation is currently experiencing financial difficulties, this offer probably isn’t right for you. It will show as a line of credit in your financial documents, including your balance sheet. 

Where to start 

Come and talk to us. We’ll offer guidance and support throughout the process, and we’ll only take your application forward if it feels responsible and right to do so. We’ll be transparent and honest with you throughout. 

Find out if you’re eligible for our Somerset Social Investment Programme or get in touch with the team to talk it through.