Use of Subsidy Report – Growth Fund

The Growth Fund provided small-scale, affordable, unsecured loans to charities and social enterprises in England. It was a partnership between The National Lottery Community Fund and Better Society Capital, delivered by Access through a range of social investors. It made up to £45m available to support charities and social enterprises to grow and create social impact in their communities. The Growth Fund uses a combination of grant funding, made possible thanks to National Lottery players, and loan finance from Better Society Capital (via the Dormant Assets Scheme) and other co-investors, to address specific gaps in the social investment market.

After deploying £48.6 million and supporting 724 investments by 2023, this report reflects on the use of subsidy throughout the programme. It analyses how subsidy was applied, its alignment with original goals, and the key lessons learned. Aimed at social investors, funders, and organisations involved, the report provides insights into the effective use of blended finance and insights for future programmes.