Sefa Innovative Lending

Social Enterprise Finance Australia (SEFA) has been established to provide finance to social enterprises on commercial terms together with targeted business advice and support. Integral to this business objective is a commitment to helping its customers build their capacity to manage debt and become financially sustainable over time. SEFA seeks to create positive social and environmental impact in addition to financial returns.

Announcement of Government Funding

On 9 August 2011 the Australian government announced that SEFA had been selected as one of only two successful applicants for funding from the Department of Education, Employment and Workplace Relations (DEEWR)’s Social Enterprise Development and Investment Fund (SEDIF). The Government’s funding of $10 million has been matched by a further $10 million received from a consortium of equity investors and commercial lenders with national and international expertise. See our media release for more information.

About SEFA

SEFA brings together Australian and international corporate and other entities with proven track records in the social enterprise sector. Current commercial and enterprise partners are Triodos of the Netherlands, Community Sector Banking (joint venture of Bendigo Bank), the Macquarie Group Foundation, The NSW Aboriginal Land Council, Bush Heritage Australia, The University of Sydney Business School's, Innovation & Entrepreneurship Research Group, Mallesons Stephen Jaques , and the Institute of Strategic Management.

The SEFA Loan Fund

SEFA has established a fund, the SEFA Loan Fund, to provide financial services to the Australian social enterprise sector. SEFA, as trustee of the Loan Fund, will focus on three broad areas of social impact – community, environment and indigenous – as well as supporting developing social enterprises via an incubator fund. By concentrating on these areas, the Fund will be addressing some of Australia’s largest unmet development finance needs.

Products and Service

The financial products and services provided by each of these funds will aim to:

leverage successful organisations that have a social, ecological and/or cultural remit, and which seek to provide substantial benefits to local communities
lift capacity and improve sustainability within the sectors they serve
increase awareness and understanding of the uses of debt and equity finance to service capital requirements
increase sustainable economic activity that benefit communities and individuals most in need

The Fund will connect investors with social enterprises and entrepreneurs, provide financial products that encourage social enterprises to develop and grown, and aim to catalyse the social impact investment market in Australia.

Education and mentoring are core to the success of enhancing the abilities of social enterprises and SEFA is developing an educational program focused on business management and responsible debt financing. Together with the Macquarie Group Foundation and other members of corporate Australia, SEFA plans to introduce a mentoring program with experienced business people and entrepreneurs providing guidance and advice to social enterprises.

Our Future

During 2012 SEFA intends to increase its capital base beyond the initial $20 million raised in order to support the growth of its loan book. SEFA is committed to developing a long-term market for debt (and equity) finance for the social enterprise sector in Australia and has set an aspirational goal of working towards becoming Australia’s leading social lender within the next five years.