Dance agency South East Dance is one of three arts organisations to receive loans under the first round of investment from the Arts Impact Fund.
The £7 million fund brings together public, private and philanthropic investment from bodies including Bank of America Merrill Lynch, the Esme Fairbairn Foundation, Nesta and Arts Council England.
First announced last year, it offers loans to arts organisations across England for capital and non-capital projects that show a “combination of social, artistic and financial return”.
South East Dance has received £350,000 that will allow it to begin work on the Dance Space. The building will provide the organisation with income from renting office and studio space.
The other recipients in the first round are Titchfield Festival Theatre, which has received £150,000 to repair and make improvements to one of its venues, and Bow Arts Trust, which receives £600,000. The trust provides affordable studio spaces to artists.
The three organisations will document the “artistic, social and financial impact” every three months for the duration of the loans, and the fund will share the findings.
Jamie Watton, chief executive of South East Dance, said: “Arts organisations are facing continuing shifts in the funding landscape so it is incredibly valuable to have a fund which helps temporarily bridge gaps in income streams for important projects like the Dance Space. This fund allows us to move full steam ahead with our plans at a crucial moment.”
Loans offered by the fund have interest rates that vary from between 4% and 7% annually, and cover periods of between three and five years.