2,200 community projects across Ireland benefit as Social Finance Foundation marks €260 million lending milestone
- Social Finance Foundation has supported 2,220 Community Projects across 26 counties since 2007
- Social Finance Foundation is funded by the retail banks (AIB, PTSB and Bank of Ireland) and the Council of Europe Development Bank with additional support from the European Investment Fund
- Term and bridging loans available through Social Finance Foundation’s lending partners – Clann Credo and Community Finance Ireland.
A major milestone in the growth of ‘social financing’ was reached today, as Social Finance Foundation, the non-profit body that enables loan finance for community projects, reported over €262 million lent to 2,200 projects since 2007. The average loan value to each organisation was €119,000.
The funding is provided by the retail banks (AIB, Bank of Ireland and PTSB) and the Council of Europe Development Bank, with additional support from the European Investment Fund.
Since 2007 loan funding has been allocated across a wide range of social sectors helping to facilitate community and social organisations to achieve their goals, delivering social benefits to communities:
- Community Sports & Leisure: €87.3m (33%)
- Community and Voluntary Groups: €82.6m (32%)
- Social Enterprises: €26.1m (10%)
- Family Resource Centres: €26.7m (10%)
- Arts, Heritage and Culture: €19.3m (7%)
- Healthcare: €6.9m (3%)
- Minority Faith Groups: €4.9m (2%)
- Social Care Housing: €5.2m (2%)
- Education: €3.1m (1%)
Community and voluntary groups and social enterprises encouraged to seek financing
Groups can apply for loans which range from €5,000 to €1m that create social benefit for their community through the Foundation’s social finance lending partners – Clann Credo and Community Finance Ireland.
Social Finance Foundation’s work enables term loans which initiate and develop projects and bridging loans. Community groups are often in receipt of grants which are only paid when the work is completed. Hence, the importance to have bridging finance which is repaid when the grant is received. 11% of the organisation’s loan book is bridging loans.
Speaking at an event today to mark this significant milestone, Social Finance Foundation CEO Garrett O’Donohoe said: “We address a niche requirement which is the particular needs of social and community groups. Having a way to access finance, without personal recourse to trustees and volunteers, enables communities to get their project off the ground and get them completed.”
Today’s event was attended by the Minister for Finance Paschal Donohoe who encouraged the continued development of social financing.
“The availability of social finance to community and voluntary organisations can play a critical role in allowing them to undertake projects that greatly benefit local communities. The positive impact these organisations have on communities throughout Ireland is significant. I would like to commend the role and work of the Social Finance Foundation and the community lenders, Clann Credo and Community Finance Ireland, who work with them. I look forward to their continued success.”
Funding provided through Clann Credo and Community Finance Ireland
Social Finance Foundation enables funding through two lending organisations Clann Credo and Community Finance Ireland, who work directly with the Community and Voluntary Groups and Social Enterprises on the ground.
Garrett O’Donohoe said the approach is built on the effective collaboration of many partners: “Reaching today’s milestone is a shared success with Clann Credo, Community Finance Ireland, Bank of Ireland, AIB, PTSB, Banking & Payments Federation Ireland, the Irish Government, the Council of Europe Development Bank and European Investment Fund.
“The support of the Irish Banks has been vital in reaching this milestone. Social financing is an ecosystem though which the banks can indirectly, via Social Finance Foundation, loan to social projects in a responsive and affordable manner.
“Our experience has been that community groups are very reliable with an excellent track record in repaying loans, because there is a commitment by the community to complete projects and make them a success. When loans are repaid, the funds are used for other social impact projects, creating a continuous positive cycle.”
Irish banks remain committed to providing low-cost funding to communities
Since its inception in 2007, Social Finance Foundation has benefitted from donated and low-cost funding from AIB, Bank of Ireland and PTSB, and previously KBC and Ulster Bank. This came in the form of an original €25m non-repayable grant, followed by €116m at preferential interest rates. The Foundation also has €20m in loan funding from the Council of Europe Development Bank and has the support of the European Investment Fund through a loan loss guarantee facility.
Commenting on the €262m milestone, Banking and Payments Federation Ireland (BPFI) CEO Brian Hayes said: “Today’s milestone for the Social Finance Foundation, demonstrates the important role financing plays in building better communities across Ireland. It also highlights the ongoing need for affordable and accessible financing for Ireland’s community and voluntary organisations and social enterprises, which are the lifeblood of our society and make a meaningful difference in the lives of thousands of people.
“Through the provision of low-cost finance by our member banks – AIB, Bank of Ireland, and PTSB – we are proud to play our part in supporting this vital work. We remain committed to working alongside the Social Finance Foundation and its lending partners, Clann Credo and Community Finance Ireland, to ensure these organisations can continue to thrive and serve their communities.”
Case Studies – Athlone Boat Club and Blasta Café
Examples of successful community groups who have benefited from social finance loans are Athlone Boat Club and Blasta Café in Co Limerick.
Athlone Boat Club is situated on the banks of the River Shannon in Athlone and offers rowing for young people from 13 years of age upwards. From 2019 to 2025 Clann Credo provided a series of both bridging and term loans to Athlone Boat Club to support a major club redevelopment.
Commenting on the impact of the social finance, President Nuala Faller said: “Athlone Boat Club is a non-profit organisation run entirely by volunteers, dedicated coaches, parents, and supporters whose commitment keeps the club thriving. Over the past six years, social finance from Clann Credo has enabled our club to pursue its Strategic Growth Plan with confidence – meeting the needs of its members while maintaining financial security and avoiding risks of debt.”
Blasta Café is a community café run by volunteers in Pallasgreen Community Centre, Templebraden Community Council in Co. Limerick and received social finance funding through Community Finance Ireland which enabled it to develop services to the community, including a community café.
Highlighting the organisation’s advancements, the Community Council’s Assistant Secretary Stephen O’Neill said: “The social finance loans we received enabled us to bridge a gap in grant funding. With this, we have been able to install a new community playground, sensory garden and walkway and renovate our community hall. The hall now hosts exercise classes, youth club activities and is home to the Blasta Café. These facilities are invaluable for our community, both young and old.”
ENDS
Media Information
Ronan Cavanagh, Cavanagh Communications: (086) 317 9731.
About Social Finance Foundation
Social Finance Foundation was established in 2007 by the Government of Ireland to address the needs of the community organisations and social enterprises for loan funding which can be difficult to obtain from mainstream financial institutions. Acting as a ‘wholesaler’, it provides funding to its lending partners – Clann Credo and Community Finance Ireland.
Unique Funding Model
Social Finance Ireland has an operating model unique to Ireland. It combines the State, acting through the Government and Department of Finance; the Private Sector through the participating banks (AIB, Bank of Ireland and PTSB); the Third Sector through the Social Lending Organisations (Clann Credo and Community Finance Ireland); and the EU through the support of the European Investment Fund and the Council of Europe Development Bank. It is this extensive and interdependent combination of support that has enabled the Foundation to deliver on its mission to facilitate social development through utilising finance and financial expertise.
