ASDA Community Capital

What is the ASDA Community Capital fund?

ASDA Community Capital is a fund designed to support early stage social enterprises looking to access social investment for the first time. Using money raised through the Plastic Bag tax, introduced in Scotland in October 2014, the fund aims to support social enterprises to make the step change they need to increase their social impact and/or financial sustainability.   

ASDA Community Capital has been specifically designed with affordability and flexibility in mind.

  • Loans range from £10k to £50k with no penalty for partial or full early repayment
  • Repayable over a maximum of 6 years.
  • No interest charged or accrued in Year 1.
  • No repayments in Year 1 (Interest and capital repayments start from Year 2)
  • No security required
  • No Arrangement fee

Who is the fund aimed at?

This fund is open to social enterprises operating in Scotland.  These organisations may have been grant funded to this point but now wish to liberate themselves from the perennial grant cycle to finance and develop sustainable enterprising solutions. ASDA Community Capital offers small investment amounts, at competitive rates with flexible terms and no requirement for security.  Priority will be given to organisations who meet the following criteria:

  1. Have been in operation for less than two years;
  2. Are taking on social investment for the first time;
  3. Want to take a step change in the delivery of significant social impact.

Organisations should also be able to demonstrate how taking on this investment will enable them to become more financially sustainable after the investment has been paid back.   The more of these criteria the organisation is able to meet, the more likely they will be to access investment.

What types of projects will the fund support?

It is envisaged that the fund could support investment for:

  • Working capital used for growth of the organisation (as opposed to maintaining existing operations)
  • Asset purchases/improvements
  • Innovation

Bridging loans will not be eligible for this fund.

How many organisations are you looking to fund?

Investments from this fund will range from £10,000 to £50,000. On this basis, the fund is expected to make between 10 and 20 investments over the year.  

So, how do I apply?

Simply call us on 0131 558 7706 to chat through your needs and the suitability of ASDA Community Capital to your organisation; we don’t have application forms at SIS.  If you’d rather email us then feel free to get in touch at hello@socialinvestmentscotland.com.