Social Capital Partners arranges for customized financing packages to social enterprises and to businesses that incorporate a social hiring mission into their business and HR models. Typically, a business we invest in must not only meet industry standard credit and financial solvency standards, they must also meet the following criteria:
Social Criteria
- Create a significant number of potential full-time hiring opportunities for those who face employment barriers;
- Provide the opportunity for skills development and career progression;
- Provide a minimum hourly wage that will elevate those employed above the poverty line; and
- Provide access to some form of benefits plan.
Business Criteria
- Compete successfully within a strong segment of the market
- Have an outstanding management team with a demonstrated track record of community involvement that is capable of carrying out the plan
- Have a solid plan to reach break even or profitability within 3 years
- Are capable of meeting any repayment obligations to SCP and other financiers
If an organization meets the criteria above, then we will investigate the investment opportunity further. Before we finalize any financing commitment, we will conduct a thorough social and financial due diligence process.
We generally do not invest in start-ups because it is rare for them to be able to meet our investment criteria, and they require relatively more effort than existing enterprises to scale up. Social Capital Partners also does not facilitate financing for:
- Feasibility Studies
- Business Incubation
- Events
- Real Estate
Our criteria are in place to help guide Social Capital Partners in achieving its social mission. They are not a comment on how worthwhile or beneficial to society any organization or project may be. On the contrary, we are frequently impressed with the creativity, energy, dedication and impact of individuals and groups working to achieve their social mission, even though only a few of the endeavours meet our investment parameters.