• Social Finance Foundation launched by Minister for Finance, Brian Cowen, T.D. will provide funding for repayable finance at affordable rates for social and developmental projects and community enterprise

• €25 million in seed funding secured from Irish banking sector

• Board of Social Finance Foundation to be chaired by Peter Quinn

Department of Finance, Dublin

The Minister for Finance, Brian Cowen, T.D., today launched the Social Finance Foundation - which he has invited Mr Peter Quinn to Chair - to implement the Social Finance Initiative announced by the Minister in Budget 2006.  The Minister stated that “this Initiative is part of the Government’s commitment to ensuring that our economic success continues to be mirrored in social and community development”.

The Social Finance Foundation has been established as a not-for-profit company to act as a wholesale supplier of social finance for on-lending to support social and developmental projects and social enterprise in local communities.  These types of projects have the potential to yield significant economic and social returns but often experience difficulties in accessing finance from mainstream financial institutions.

The Foundation has received seed funding of €25 million from the Irish Banking sector for distribution to qualifying intermediaries.  These lending intermediaries are expected to comprise existing social finance lenders, as well as those that emerge as a result of the implementation of the initiative.

The establishment of the Foundation is in response to proposals made in a number of reports over recent years promoting the development of social finance in Ireland by enhancing the level of resources available for social finance lending.  It will complement the wide range of measures that are currently in place to promote and assist community infrastructure and local development.  It also provides the opportunity to explore options for the future development of social finance provision in Ireland.

Speaking at the launch of the Foundation, Brian Cowen, Minister for Finance, said “I am delighted to launch the Social Finance Foundation and I particularly welcome the funding of €25 million from the Irish Banking sector.  I’m also very pleased that Peter Quinn has agreed to become Chairman of the Social Finance Foundation in view of the very substantial experience and expertise he will bring to the role”. 

“I see the launch of the Social Finance Foundation as a catalyst for deeper participation by private finance in the area of local and community development and social enterprise, providing a long-term sustainable funding stream for suitable social finance projects.”

Speaking at the launch, Peter Quinn, Chairman of the Social Finance Foundation said “I am very pleased to take on the role of Chairman.  I am convinced that the Foundation will have a lasting, positive impact in local communities.  My fellow Board members and I can assure the Minister of our commitment to excellence and rigour in the operation of the Social Finance Foundation.”

Speaking on behalf of the Irish Banking Federation, Richie Boucher, President, IBF, said “Our members are extremely supportive of this initiative, and are happy to contribute both the funding and the expertise of the banking sector to ensure that this excellent initiative achieves maximum impact in communities throughout Ireland.”