Grow expands thanks to new £4m deal

Social enterprise the Grow Organisation has just sealed a deal worth £4m that will help 1,200 long-term unemployed people into work during the recession - with some help from Big Issue Invest.

The Grow Organisation has received several pots of money from the Department of Work and Pensions' (DWP) £1bn Future Jobs Fund. It means it can open several new franchises, expanding its operations to almost all of the east coast.

But, to help it cope with the rapid expansion the Grow Organisation has also secured a loan for £200,000 from Big Issue Invest.

Grow Organisation CEO Trevor Lynn said: 'We'd much rather borrow from organisations like Big Issue Invest than a commercial bank, as the profits go to good causes, rather than fat cats.

'We feel further investment can be achieved and hope this is the spark that sees us expand throughout the UK.'

Next month the organisation will start delivering the 1,209 jobs that have been funded so far but it is also applying to the DWP for more jobs under the Future Jobs Fund.

If successful, by the end of March, the organisation will be delivering about 3,500 jobs under the scheme into 17 counties. The jobs will be in areas as diverse as recycling, gardening, accountancy and marketing. As well as helping the long-term unemployed through the DWP funding the social enterprise is committed to training and employing those furthest from the workplace, such as ex-offenders.

Martin Skelton, co-director of new franchises Humber Mow and Grow and Humber Recycle and Grow, says they will be looking to create up to 400 jobs thanks to the deal.

'The Future Jobs Fund money will help us pay for the costs of the staff for the first six months and the equipment costs. What we're expecting to do is grow the initial investment and retain as many of the workforce as possible to grow and make our impact.

'Without the Future Jobs Fund money it would have taken longer, it would have been on a completely different scale whereas now it will enable us to make a huge impact as an organisation and to the individuals in the community,' said Skelton.

Big Issue Invest CEO Nigel Kershaw said he was very 'proud' of the loan.

'People often talk about prison reform but unless we can provide opportunities for people to get off the merry-go-round of re-offending, then it is to no avail - Mow and Grow have shown that there are alternatives,' said Kershaw.