Government Calls for New Funding Options for Social Enterprises
10 January 2011 at 3:35 pm
The Federal Government has called for proposals to establish new banking and financial services for social enterprises in Australia.
The Gillard Government announced in July last year that it would make $20 million available for social enterprises through the establishment of the Social Enterprise Development and Investment Funds (SEDIF).
Now the Government is calling for banks, financial institutions and other entities to submit proposals to match the Government’s investment and grow the investment pool to $40 million.
Minister for Employment Participation and Child Care, Kate Ellis says that these new social enterprise funds will help to address the difficulties that social enterprises can face in accessing private capital for the development of businesses.
The Department of Education, Employment and Workplace Relations (DEEWR) has released guidelines that the department hopes will bring Government, social enterprises and the investment sector to ensure that Australian social enterprises have a strong future.
Minister Ellis says the guidelines will support organisations with relevant investment expertise and capability in applying for a one-off Government grant, to help establish funds that will provide seed and growth capital for social enterprises,” Ms Ellis said.
She says social enterprises will benefit from access to qualified fund managers in securing the funds that will enable social enterprises to extend their reach and impact.
By working more closely with banks and other financial institutions, Ellis says social enterprises will be assisted to ensure their ongoing sustainability and ensure the application of sound business principles.
The SEDIF complements the Government’s Jobs Fund and Innovation Fund, which have invested over $74 million in over 100 social enterprises.
The SEDIF Guidelines are available here, with applications open until 18 February 2011.
For more information visit www.deewr.gov.au/Department/Pages/GrantOpportunities.aspx