- The loans are always combined with local coaching and annual external auditing of the programme benefiting from the loan.
- The loan is given with 10% annual interest, and the interest is used to co-fund the programme coaching and auditing. The coaches and auditors are reimbursed a minimum annual amount of Euro 300.
- The loans are given out as "soft loans". The HR&S definition of soft-loans is that legal actions will not be taken, even if mistakes are made. Mistakes are followed-up on through the local coaches, auditor and community alliances benefiting from discussions, awareness rising, reflections and negotiations.
- HR&S offers loans even if the loan-taker is not in a position to guarantee the loan by a value-securing object or capital. The purpose is obviously to reach also under-served social entrepreneurs. The risk with entering a financial partnership without formal guarantees is addressed through cooperative responsibility structures, branding and public relations with the targeted community, and an accountability management package designed by HR&S.
- A potential loan-taker becomes eligible for a loan by attending a series of mini-courses that ends with an exam. Those who pass the exam are welcome to bring their business models to a series of workshops. The trainee pays €10 for the mini-course and the workshop. After the workshop, potential loan-takers may be invited to discuss a loan-taker and a coaching agreement.
- Each project starts small and scales firmly. The first loan is usually around €1,000, and a second twice the amount. Usually, the total loan for each project is €15,000.
- Any income exceeding the cost of paying back the loan and the interest is kept by the social entrepreneur to primarily cover the business running costs and be appreciated as profit.