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Independent Review

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Worthstone, leading research specialist on impact investment, has produced an independent product review on the Resonance Bristol SITR Fund for IFA subscribers via its web-based platform.

Useful SITR Articles

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Resonance's First SITR Fund



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Useful presentation from BSC regarding SITR and how it can work for Fund Managers and Advisers. Download a copy here

 

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NEWSLETTER ARCHIVE

Resonance Bristol SITR Fund

10-03-2016

The Resonance Bristol SITR Fund, launched in 2015 is the first of its kind, harnessing a new government initiative called Social Investment Tax Relief (SITR) to empower social enterprises to tackle inner city poverty while still providing a risk-adjusted return to investors.  Early 2016 saw the first close of the Fund at £1.3m which has enabled the first investments to take place.  Read more in our press release.

Resonance believes there is a real opportunity for funds to address the problems of inequality in our cities where deprivation and wealth live in close proximity.   Bristol is a perfect place to start as it benefits from a well-organized group of social business angels who are passionate about channelling their wealth and skills into social enterprises and who we have already worked with during the pilot phase. 

Social Investment Tax Relief is the key to the development of these funds. It simultaneously drives down the cost of capital (the fund will offer loans with interest rates between 4% and 7%, unsecured) for social enterprises who need funding to scale up the impact of their projects, and reduces the risk for investors in that they receive 30% of their return up front through the tax relief.  See our infographic that explains how the social investment tax relief works.

Our short film features the two social enterprises that were part of the pilot phase and explains how the investment has been used to grow their business in order to help dismantle poverty.

Bristol is one of the UK’s first Social Enterprise cities and Resonance has identified more than twenty social enterprises (SE) capable of receiving SITR investment in the city.

Some of the social issues that investees will tackle include: job creation, skills development, debt reduction & support, improved standards of living, health & well being, addressing the needs of addicts and ex-offenders, improving access to affordable accommodation, alleviating long-term unemployment and reducing the cost of living.

Dismantling_Poverty.png The development of the fund, which was sponsored by Wealth Manager UBS, followed an 18 month pilot phase including transacting the first ever SITR deal between a small group of angel investors and ‘FareShare South West’, which diverts food surplus to organizations working with vulnerable people - this story is featured in our video.

There is a vision for six to eight more of such funds in cities across the UK and the results of the pilot phase were summarized in our report “A Social Investment Fund for Bristol”.

Social Enterprises wanting to explore borrowing funds from this fund should get in touch with the Fund Manager, Donna Thomas at donna.thomas@resonance.ltd.uk.

Please check first that you are eligible for SITR funding.

HMRC stipulates that Social Investment Tax Relief funds can only invest in:

  • Community Interest Companies
  • Community Benefit Societies or
  • Charities

The Social enterprise must at the time of the investment have:

  • Fewer than 500 full-time employees
  • Not more than £15m in gross assets without the deduction of liabilities

The maximum investment is c£270,000

To be eligible for the Bristol SITR Fund Resonance requires that a business must have:

  • A strong social impact at its core
  • A minimum turnover of £150,000
  • Trading for at least 18 months with the first set of audited accounts filed
  • A clear financial model 
  • Robust financials with potential for growth that will allow it to repay its debt
  • Located in Bristol and/or the surrounding areas

If you would like to trade with our portfolio preferably buying from them, please have a look at what they can offer you.

- FareShare South West 

- The Severn Project

Finally, if you are a business angel or other professional and would like to register your interest in supporting portfolio organizations as a Non-Exec / Trustee, or provide other pro bono (or occasionally paid) advice, please fill our Resonance Business Support Registration.


Our short film does not contain, constitute nor does it form part of, an offer to sell or purchase or a solicitation of an offer to sell or purchase, any securities, investments or financial instruments referred to herein or to enter into any other transaction described herein. Resonance is not providing, and will not provide, any investment advice or recommendation (personal or otherwise) to you in relation to any securities, investments or financial instruments or transactions described herein. Whilst all reasonable care has been taken to ensure the accuracy of the information contained in this email, neither Resonance nor its officers accept any liability for its contents or for any errors or omissions.