There is a growing social enterprise and charity sector in Scotland which is looking to make a real, measureable and long-term impact on people’s lives. There is not enough appropriate funding to sustainably support this growth.
Through the Social Growth Fund, Social Investment Scotland will offer a range of different types of loans with a maximum term of up to 13 years and between £100k - £1m in size that are flexible and tailored to their borrowers. The type of investment offered has been developed in consultation with SIS's customers and addresses gaps in the Scottish social investment marketplace in order to maximise the contribution to society made by Scotland’s social enterprises and charities.
The Fund will measure impact in line with our Outcomes Matrix. It will track outcomes reported by its borrowers. The outcomes will be across a broad range of outcome areas, including employment, training and education, housing, community, and arts and sport. These will be reported annually.
Social Investment Scotland is a lender with a strong track record of making investments – since 2001 they have invested £49 million in over 200 organisations in Scotland. With a strong investment process and credit management systems SIS will be well-placed to grow the amount of funding available to Scottish charities and social enterprises. Our £8,000,000 investment will be matched 1:1 by money from the Scottish Government, meaning our investment will go further.
The presence of a fund manager based in Scotland to serve the Scottish market is hugely valuable. Their knowledge of the greatest local needs and the Scottish policy landscape make them ideally placed to ensure this investment really makes a difference. This investment will increase the operational sustainability of SIS at the same time as significantly increasing the amount of social investment capital available to organisations based in Scotland.
- Big Society Capital's investment: £8 million
- Total fund size: £16 million
- Co-investor: The Scottish Government
- Manager/Arranger: Social Investment Scotland