Impact Lending Framework
Delivering meaningful change
We want to provide tangible support to property developers, across all sectors and geographies of the UK, who are implementing impactful measures into their visions and designs.
Our Impact Lending Framework is an innovative, market-leading offering to incentivise developers to adopt stretching sustainability measures and genuine socially impactful projects. Developments that qualify for an Impact Loan can benefit from up to a 1% reduction in their cost of finance, with the benefit paid at the conclusion of the project to ensure the Framework delivers real, tangible impact.
The Framework
Fee reduction to incentivise high levels of sustainability or social impact
Rewards are back-ended, based on delivery, not just aspiration
Qualifying criteria are stretching and use independent, industry-accredited measures
Performance is subject to external, third-party verification
Sustainability Criteria and Social Impact Criteria
Developments can qualify for an Impact Loan if they meet either the Sustainability Criteria or the Social Impact Criteria.
The Sustainability Criteria is designed to drive the adoption of sustainable methods of construction, and thoughtful design to enable efficient long-term building usage.
While the Social Impact Criteria aims to encourage investment into areas of higher deprivation or to support the provision of increased affordable housing.
How to qualify for an Impact Loan
The Framework sets out how prospective development projects can qualify for a residential or commercial Impact Loan.
Developments must meet either the Sustainability Criteria or the Social Impact Criteria.
Residential Developments
Sustainability Criteria
To receive a fee reduction up to 1% of the total loan, developments must meet both of the following criteria:
- Minimum EPC B for all units
- Minimum Silver rating under Next Generation Project Criteria
Social Impact Criteria
To receive a fee reduction up to 0.5% of the total loan, developments must meet either of the following criteria:
- Minimum 50% of units qualifying as affordable housing;
- Project located in a local authority ward ranked within the highest 3 deciles of deprivation for the appropriate country.
Commercial Developments
Sustainability Criteria
To receive a fee reduction up to 1% of the total loan, developments must meet the following criteria:
- EDGE Certified to a minimum standard of 20%+
Social Impact Criteria
To receive a fee reduction up to 0.5% of the total loan, developments must meet the following criteria:
- Project located in a local authority ward ranked within the highest 3 deciles of deprivation for the appropriate country
EDGE certification
We work with independent third parties to verify that an Impact Loan, under the Sustainability Criteria, has achieved the necessary criteria.
Global EDGE certification body, Sintali, provide third-party certification services on Commercial Impact Loans seeking to qualify under the Sustainability Criteria.
Watch this video to learn about EDGE certification and the application process.
Where to next?
We're passionate about our sustainable and social impact commitment.
Our mission is to provide flexible lending solutions to developers and investors.
Every project is different, so we tailor our approach and work together with you.
We're here to help
If you would like to find out more about our Impact Lending Framework, please contact our Head of Impact, Sarah Milne at [email protected].
