White Box Enterprises has officially launched the Social Enterprise Loan Fund (SELF) — marking a major breakthrough in finance for social enterprises that could unlock hundreds of jobs for people facing barriers to employment.
The first-of-its-kind loan fund has been backed by some of Australia’s most influential financial institutions — including Westpac Foundation and Macquarie Group Foundation — alongside federal and state governments, to bridge a critical market gap.
The SELF is designed to bridge the gap between traditional finance and philanthropic funding, offering catalytic capital that empowers social enterprises to grow sustainably and reduce reliance on grants.
Giving social enterprises the right financial tools
Despite their contributions to Australian communities and the national economy, social enterprises remain locked out of traditional finance due to their unique business models. The patient capital fund fills a critical gap in the market, providing social enterprises that support employment pathways with the flexible, affordable finance they’ve long been shut out of.
The SELF addresses this gap by providing flexible loans of $100,000 to $500,000 at rates as low as 6.5% and terms of up to seven years. The fund is expected to support between 12 and 20 social enterprises, helping create over 200 jobs for people who struggle to find work, including those facing long-term unemployment, people with disability, and refugees.
While not a huge play in commercial terms, with an initial $4.2 million in funding, what the SELF signifies is game-changing. With its flexible loans and Westpac Foundation’s catalytic first-loss capital backing, the SELF could set a precedent for future impact investment in Australia.
“The SELF is about giving social enterprises the right financial tools they need to succeed and make an impact,” said White Box Enterprises COO Mark Daniels.
“We’ve seen time and again how limited access to capital stifles growth in this sector. Social enterprises often struggle to secure the capital they need when they want it because philanthropy operates on a different timeline. The SELF intends to change that. If you are ready for investment, the SELF can get you the money you require when you need it.”
By providing “the right capital at the right time” with flexible, patient capital on their own terms, the SELF empowers social enterprises to grow independently and fulfill their mission of providing meaningful work opportunities to those who need it most.
Committed investors
Investors include Westpac Foundation, Macquarie Group Foundation, the Australian Government, the Victorian Government, the lan & Shirley Norman Foundation and English Family Foundation.
Westpac Foundation — the fund’s first investor — has committed $1 million in first-loss capital and an additional $500,000 to support operational costs over the first two years-helping to de-risk the fund and attract further institutional investment.
However, the raise — which has spanned more than two years and with a $5 million target still isn’t entirely done — hasn’t been entirely smooth sailing, explained Mark.
White Box found it challenging to find investors who were prepared to accept concessional returns, despite the “super strong outcomes” of these social enterprises and investors’ money being extremely safe because of the first loss. Mark also noted that at the moment philanthropy, in particular, still doesn’t have the structures to understand how to do concessional finance effectively.
However, things are changing with Mark observing a notable improvement from three or four years ago — Macquarie now has dedicated funds for impact investment at concessional rates, and Westpac has done some interesting stuff over the last few years with alternative financing models for social enterprises. This supports what can be achieved through funds that are concessional and high impact and how that can sit in a balanced portfolio for a philanthropist of grants, investments and impact investments.
Westpac Foundation CEO Amy Lyden said the launch of the SELF “marks a significant milestone” in supporting the growth of social enterprises across Australia.
“At Westpac Foundation, we’re proud to back this innovative initiative with catalytic funding to help social enterprises access the capital they need to scale their impact,” she said.
“This fund is more than just finance-it’s about enabling businesses to create meaningful employment opportunities for those who need them most. We believe this approach will drive long-term, sustainable change in our communities.”
Susan Clear, Macquarie Group Foundation’s Director of Social Impact Investing said: “We are delighted to support the SELF, a product which aligns with our commitment to breaking down barriers to employment.
“By investing into SELF, we are helping enable social enterprises to create meaningful employment opportunities for those who face significant challenges entering the workforce. This investment underscores our dedication to fostering an inclusive economy where everyone has the chance to succeed.”
Federal and state government backing
“The backing from both the federal and Victorian governments signals a growing recognition of social enterprises as key drivers of employment and economic inclusion”, added Clear.
Mark also notes the importance of government saying, “government coming to the party is super exciting. They’re the ones who, along with philanthropy, can really make this stuff happen in the future. They’re a critical component of this sort of an impact investment fund.”
Minister for Small Business and Employment in Victoria Natalie Suleyman commented: “We’re backing social enterprises so they can grow – creating more local job opportunities for Victorians.”
Expressions of Interest (EOI) are now open
Social enterprises who support employment pathways interested in accessing affordable, flexible finance to help grow their business and impact are encouraged to apply. Find out more here: https://whiteboxenterprises.com.au/innovate/self/
Seeking further investment
Additionally, interested investors can contact Mark Daniels and White Box at https://whiteboxenterprises.com.au/contact/
Webinar: Introducing the SELF
“Following the launch of the Social Enterprise Loan Fund (SELF) this week, we know there are plenty of questions about how it works, who’s eligible, and what makes a strong application. Join us for a live webinar where we’ll walk you through the SELF, answer your questions, and help you determine if it’s the right funding opportunity for you.”
Tuesday 25 March
12pm – 1pm AEDT
Online (link provided upon registration)
Register now to secure your spot.
https://events.humanitix.com/introducing-the-self
White Box at the Impact Investment Summit Asia Pacific
Hear from White Box Enterprises’ Luke Terry on the morning of Day 2 of the Impact Investment Summit Asia Pacific where he will moderate the “Social enterprise sector and impact investing in Queensland” panel, that will include:
- David Janetzki MP QLD Treasurer, Minister for Energy and the Minister for Home Ownership.
- Allan English AM
- Sally McGeoch, Senior Advisor, Westpac Foundation
You can register for the Impact Investment Summit Asia Pacific at https://impactinvestmentsummit.com/