the Social Impact Bond

A Social Impact Bond (SIB) is a financing arrangement where private investors fund projects aimed at solving social issues, such as reducing homelessness or improving education. If the project succeeds and achieves specific outcomes, the government repays the investors with interest. If it doesn't meet goals, investors might lose some or all of their money. This approach shifts the risk from governments to private investors and emphasizes measurable results, encouraging efficient use of resources to generate social benefits while providing potential financial returns.