Social enterprises benefit to the tune of £400k

Social Investment Scotland (SIS), Scotland’s leading lender to the third sector, has invested £400k in seven social enterprises, including one based in Edinburgh.
The lender raised the money through its social investment fund – otherwise known as SIS Community Capital – which generated £400,000 entirely from private investors.
Its beneficiaries, which SIS says are all making a significant social or environmental impact within their local communities and have each secured investment of between £25k ad £100k from a group of 27 private investors, are:
The Edinburgh Sculpture Workshop, which has received £25,000 to fit out a new café space which has now been leased out to increase footfall and generation income

 

Street League, which has received £100,000 to fund a new mobile team running rural academies across Scotland, helping to tackle youth unemployment through a structured football and education programme

 

Just Trading Scotland, which has received £100,000 to fund and facilitate a step change in its growth as part of a re-branding and repackaging exercise to reach a wider retail market, providing smallholder farmers and craft workers and fair way to sell their goods

 

Broxburn United Sports Club, which has received £50,000 towards the funding of a new community wing within its facility at Albyn Park, providing the community access to a range of social, health and well-being programmes

 

MacDougall of Dunollie Preservation Trust in Argyll & Bute, which has received £30,000 to develop its ‘heritage experience’ operation, providing more learning and volunteering opportunities for the local community.

 

The Scottish Traditional Boat Festival in Aberdeenshire, which has received £50,000 to support its transition from grant dependence to trading by taking on a 25 bed bunkhouse, continuing to ensure ownership and restoration of local facilities for the good of the community

 

Dundee Gymnastics Club 2K, which has received £44,000 to finance a new lease, redecoration and gymnastics equipment, encouraging young people from all backgrounds to participate in gymnastics and advance health and well-being, education and employment in the city
SIS Community Capital was the UK’s first social investment tax relief fund, allowing individuals to invest in a fund which provides both tax relief and also a social return on investment, by supporting the development of social enterprises. Tax relief for investors is provided in the form of a 30% relief on their investment from their income tax liability.
The fund provides investees with affordable unsecured finance over a six-year term, enabling them to develop their business and focus on delivering social impacts before repayments of the loan capital begin. Loans from the new fund are structured to allow social entrepreneurs to generate income and use cash flow to build revenues paying interest only in the first three years at an affordable rate of just six per cent per annum.
Alastair Davis, chief executive of SIS, said: “SIS Community Capital is a great example of how we can use social investment tax relief to open up a new source of capital for social enterprises. We’ve seen a huge amount of interest from investors, who have been keen to become part of a new and innovative way of helping to support and grow Scotland’s thriving social enterprise sector. Using the funding from SIS Community Capital, these seven social enterprises will now have the time to develop their businesses and focus on increasing their social impacts, before loan repayments begin.
NCM Fund Services Limited, based in Edinburgh, is responsible for ensuring compliance of all FCA regulated activities of the fund.

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