When did tax get to be so interesting? I guess that’s an easy answer for us at Big Society Capital and our friends at Social Investment Scotland who this week announced seven new investments totalling £389k from their dedicated Social Investment Tax Relief Fund, Community Capital.
The organisations who have received investment range from a community gymnastics club in Dundee to creative and heritage organisations: the MacDougall of Dunollie Preservation Trust, the Scottish Traditional Boat Festival and the Edinburgh Sculpture Workshop. These are exactly the types of organisations who need access to small amounts of capital. It is worth noting that the smallest loan was just 25k and the average only 55k. Further evidencing the need, desire and demand outlined in Social Enterprise Uk’s ‘Prospecting the Future’ Report.
However it is fair to say that the types of trade and profile of these charities and social enterprises who provide valuable and important community services are perhaps not the typical profile of traditionally investable propositions and it is great news that SITR is helping to reduce barriers to accessing affordable, patient capital potentially from a new audience of investors.
But don’t take it from me waxing lyrical……….
“The flexible terms of the interest only payments were really attractive to us, we found the right building and now with the help of this SIS loan we can fill it with gymnasts spinning, tumbling and dancing their way to success” Clare Huxley, Chairperson, Dundee Gymnastics Club
“The loan contained sensible and practical conditions which reflected a true understanding of our sector” Roger Goodyear, Chairman, Scottish Traditonal Boat Festival
All very positive and encouraging and there’s lots more happening!
Next week will see us publish the indomitable Matt Fountain’s "A Social Entrepreneur’s DIY Guide to SITR" and a new case study from Burley Gate Community Shop.
So there are now 19 SITR deals done. Who will be number 20? Watch this space, it is bound to prompt another blog from me.