A new £20 million fund has been launched to offer arts organisations loans for projects aiming to help them build financial sustainability.
Nesta, a foundation that promotes innovation, is behind the Arts and Culture Impact Fund, which will be available to sectors including theatre, museums and comedy.
Organisations will be able to apply for loans, both secured and unsecured, of up to £1 million for projects that help build resilience or engage with local communities. The fund runs until 2023.
Nesta hopes the scheme will give organisations access to “affordable and flexible finance that may not be easily accessible through traditional routes such as high street banks”.
Recipients will also be offered support from Nesta including advice about how to become more sustainable and develop new sources of income.
Nesta has committed £6 million to the Arts and Culture Impact Fund, which also has support from Arts Council England, National Lottery Heritage Fund, Bank of America, Big Society Capital and the Esmée Fairbairn Foundation.
The fund follows pilot funds from Nesta offering arts organisations loans, which have lent more than £9.1 million since 2015. Projects that have been supported included Central School of Ballet, Birmingham Royal Ballet and London venue Village Underground.
Nesta director of arts and culture programmes and investments Francesca Sanderson said: “Impact loans are an under-explored way of supporting the arts and cultural sectors.
“I can’t wait to see what exciting, ambitious long-term arts and culture projects we’ll support with our new fund. We’ve learned so much running the pilot and are looking forward to helping many more organisations reap the benefits of our loans from the new fund over the next few years.”
Information about how organisations can apply for the fund is available on Nesta’s website.