Question to the Department for Digital, Culture, Media & Sport:

To ask Her Majesty's Government whether they have any evidence of social investment funds vehicles encouraging small charities and social enterprises to take out high interest loans.

The government collects no systematic evidence of the different rates of interest offered by social and commercial lenders. Interest rates cannot be compared in isolation. Interest rates applied by all investors, including independent social investment funds, are calculated based on credit assessments and reflect the risk presented by the individual organisations seeking investment and the costs of providing finance.

We have received no complaints that recipients of social investment are being obligated to accept any investment offer they feel is not beneficial to them. Social investors in the financial and philanthropic sectors are regulated by the respective regulatory bodies to ensure compliance to standards.