New source of financing will be available to social entrepreneurs

Hartford, Conn. — reSET, the Social Enterprise Trust, recently announced the launch of the Social Enterprise Investment Fund (the SEIF or the fund). The fund will begin providing working capital to early stage and more developed social enterprises in Connecticut.

Social enterprises are businesses whose goals are to generate profits and solve social problems. These businesses are innovative, market-supported, self-sustaining and mission-driven.

The SEIF is an “impact investment” fund, managed by skilled investors, offering loans to eligible social enterprises to help them grow their business and increase the impact of their work. The SEIF is designed as an evergreen fund, focusing on debt financing, and offering below-market rates. The fund will invest a minimum of $5,000 and maximum of 5% of the enterprise’s value.

The SEIF is a limited liability company wholly owned by reSET, the Social Enterprise Trust, located at 99 Pratt Street in Hartford, Conn.

As of July 16, 2013 the SEIF’s balance was reported to be $77, 000. A private group of investors will match gifts to the SEIF dollar-for-dollar up to $50,000. In addition, gifts will be matched by 50% through a challenge grant issued by CT Next. The goal is to grow the fund to exceed $100,000 by August 31, 2013. reSET is launching an online Crowdfunding campaign to increase the size of the fund. Those interested in providing financial support can go to StartSomeGood.com starting on the kickoff date, July 29th.The fund’s long-term goal is to grow to $1,000,000 in cash and investments.

By establishing an investment fund, reSET is taking on the challenge of connecting social entrepreneurs directly with funding sources. reSET’s suite of programs provides education and support to prospective and early-stage social entrepreneurs. Among these programs, reSET prepares new businesses to develop and strengthen their business plans and to seek investment.

Adding the SEIF to the range of services now provided by reSET is a big step forward for the organization according to CEO Kate Emery. “We are designing the process to be straightforward and uncomplicated, so that social entrepreneurs will have ready access to the resources they need to start and grow their businesses.”

The SEIF will provide access to funding from both reSET donors and impact investors. According to reSET board member Jim Carter “capital is the lifeblood for all new businesses.. This fund will address the particular needs of social enterprises.”

Having an investor like SEIF ? who can speak the same ‘language’ as social entrepreneurs, and who understands the balancing act needed to serve both profit and purpose ? is significant to the growth of Connecticut’s social enterprise sector. Opening a funding resource to early-stage social entrepreneurs will help build a foundation for the growth of a vibrant and active social enterprise community within Connecticut – creating jobs, solving social problems, and generating new tax revenue for the state.

reSET’s mission is to promote, preserve and protect social enterprise, and to help entrepreneurs leverage the power of business to create public good. Strategically, reSET’s goal is to make Connecticut a national leader in social enterprise by offering social entrepreneurs educational and support programs, work space, access to loans through the Social Enterprise Investment Fund, and other services to help launch and grow their businesses. reSET supports legislation to enable social enterprise in Connecticut, and has also convened conferences at Connecticut colleges and universities, inspiring them to develop social enterprise offerings within their business curricula.

Since becoming fully operational a year ago, reSET has helped launch and grow 11 social enterprises, associated with 20 jobs. Two of those businesses are working to become regional in scale and one to become national in scale. reSET has also opened an incubator and community co-working space at 99 Pratt Street in downtown Hartford. The space focuses on social enterprise, but also welcomes freelancers, visiting business people and small businesses.

Contact Information:
Meryl Willett
Community Builder
Phone: 860-560-9120 ext. 204
MWillett@www.socialenterprisetrust.org