The Welsh Assembly Government is to put £1.3m into developing a community-based loans facility for social enterprises, more social firms and more development trusts.

In a statement, the Assembly said the funding, to be filtered through Social Firms Wales, the Wales Co-operative Centre, Robert Owen Community Banking Fund and the Development Trust Association, over the next three years, would be used to 'support the further development of the social economy in Wales'.

The Robert Owen Community Banking Fund will receive the slimmest share of about £76,000 to develop a small community development finance institution. It will provide small loans to rural social enterprises in Powys.

Increasing turnover

The Wales Co-operative Centre will receive the biggest chunk of £510,000 to develop co-operatives, credit unions and other mutual organisations. The work will include training and helping social enterprises to increase their turnover.

The Assembly is giving Social Firms Wales £207,000 to create two social change partnerships and to help the creation of five social firms in Wales. And, the Development Trust Association Wales will receive £505,000 to assist the creation and development of new and emerging local development trusts.

Positive impact

The Assembly's minister for regeneration, Leighton Andrews, said: 'Great strides have been made in developing a vibrant social economy in Wales. Whether it is providing full time employment to people with disabilities or enhancing the local environment, it is having a positive impact across the country.

'We want to accelerate this progress. Supported by the funding I have announced today and working with social enterprise sector we can make sure that the social economy continues to develop for the good of society and the economy.'