White Box launches first-of-its-kind loan fund to fuel growth in social enterprises

White Box Enterprises has launched an innovative loan fund offering flexible, low-rate loans to help create social enterprises and more than 200 jobs for people facing barriers to employment. Backed by philanthropy and government, the aim is to provide social enterprises the ‘right capital at the right time’.

The Social Enterprise Loan Fund (SELF) is Australia’s first loan fund specifically designed for social enterprises that support employment pathways. Social enterprises have proven their contributions to Australian communities and the economy over the last two decades, but continue to face significant challenges in accessing the finance they need to grow.

The SELF addresses this gap, providing flexible, affordable, impact-driven financing tailored to the unique needs of social enterprises. Through the provision of flexible loans of $100,000 to $500,000 with rates of 6.5% and terms up to seven years, the SELF is expected to support between 12 and 20 social enterprises, helping create more 200 jobs for people facing barriers to employment.

Managed by White Box Finance, a separate entity from White Box Enterprises, the SELF is overseen by an independent board of directors with finance and risk expertise and has engaged an external fund administrator, Rawlings Bolton. The fund 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.

Mark Daniels, COO of White Box Enterprises, said: “The SELF is about giving social enterprises the right financial tools they need to succeed and make an impact.

“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.”

The SELF has launched with an initial $4.2 million in funding, with a goal to reach $5 million. The fund’s initial backer, Westpac Foundation, has committed $1 million in first-loss capital and an additional $500,000 to support operational costs over the first two years, reducing risk for future investors. Additional contributions come from Macquarie Group Foundation, the Australian Government, the Victorian Government, the Ian & Shirley Norman Foundation and English Family Foundation.

Westpac Foundation CEO Amy Lyden said the launch of the SELF “marks a significant milestone in supporting the growth of jobs-focused 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. 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.”

The Victorian Government has also been a supporter of the SELF from the outset, recognising its potential to unlock growth for social enterprises and drive inclusive employment. Minister for Small Business and Employment in Victoria Natalie Suleyman said: “We’re backing social enterprises so they can grow – creating more local job opportunities for Victorians.”

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.

Expressions of Interest (EOI) are now open. Social enterprises who support employment pathways interested in accessing low-cost, patient capital to help grow their business and impact are encouraged to apply. Learn more about the SELF online.