Blended Capital

 

The use of blended capital allows for philanthropic dollars to do more than traditional grant-exclusive programs.

 

The Integrated Fund allocates capital in the form of grants or loans based on an understanding of which type of funding will have maximum long-term sustainable impact in the given context. This capital-agnostic approach promotes sustainable change by providing the kind of funding and support needed at various stages in an organization’s development.

The loan component of the fund creates a sustainable model for long-term investment in the region, as the Fund self-perpetuates when loans are recycled.

GRANTS
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Grants are awarded to organizations that provide community-based social services, including healthcare, education, and vocational training. Grants may also be purposed to build and strengthen local networks of individuals working across the social sectors to promote information sharing and collaboration.

Some grants are used to support capacity building in the business sector, such as providing training for entrepreneurs and small business owners, including in the agricultural sector. Grants used for business development will help to ensure the success of businesses in which investments are placed required to see sustainable growth.

LOANS
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The Integrated Fund provides initial small loans to help new businesses become established, with the goal to develop their capacity to absorb larger loans in time. Loans for new enterprise development are provided via a revolving loan fund for a term of two years.

We also provide scaling and maturation loans to help small and medium enterprises expand. These larger loans are provided over several years to ensure the longevity of investment required to see sustainable growth.

EQUITY INVESTMENTS
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Equity investments will be provided to small- and medium-sized enterprises that are able to reliably produce a return. Very few businesses will qualify for equity investments in the initial years of the Integrated Fund, but these opportunities will be gradually developed via loans. These investments may be made through the use of an accelerator or incubator approach and will prioritize businesses that provide significant employment within the area.