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SIS Growth Challenge 2022

Entries for the SIS Growth Challenge 2022 are now closed. The following information is for reference only at this time.

Successful applicants will have growth aspirations that need £100k+ of loan funding, with potential for up to 20% of the loan amount required as a grant, during 2022, and be able to demonstrate how these funds will generate an increased Social Impact in their community as well as a sustainable business model. Successful applicants may also be able to benefit from up to £5,000 of investment readiness grants, if required.

We want to support impactful organisations with a transformational grant alongside a traditional Social Investment loan from our Social Growth Fund.

Who is eligible for the loan?

The primary eligibility criteria relate to the legal form of the proposed borrowers from the Fund. We are looking for:

• Companies Limited by Guarantee
• Community Benefit Societies (e.g. an Industrial and Provident Society)
• Scottish Charitable Incorporated Organisations (SCIOs)
• Community Interest Companies (CICs)

The overriding principle when assessing eligibility should be that the organisation has in place an appropriate “asset lock” in place demonstrated via two main characteristics:
1. That profits earned are reinvested within the organisation or in the beneficiary community: they are not distributed to owners, directors or shareholders (except where shares are wholly owned by a charitable organisation or CICs limited by shares where a maximum aggregate cap of 35% is allowable by the Regulator);
2. That in the event of dissolution, the assets of the organisation, following repayment of outstanding debts, are reinvested either in another organisation with similar aims or objectives or some other alternative that avoids distribution to owners, directors or shareholders.

For the avoidance of doubt, this would exclude any investments to unincorporated bodies, as these organisations are not regulated.

What if I do not meet these criteria?

Please have a conversation with us before submitting an expression of interest.

Do I need to be based in Scotland?

Organisations eligible for Funding must have a clear and demonstrable impact in Scotland.

What are the terms of the investment?

Investment from the Challenge is intended to be as flexible as possible, and a bespoke investment package will be developed in partnership with you. However, as a guide, investments will have the following terms:

Loan Amount: Minimum – £100,000 Maximum – £1,300,000

Loan/ Grant split: Will be determined once all applications are received – successful applications will be informed of the level of grant that SIS is able to assess for their plan prior to any work taking place. Maximum grant award will be up to 20% of total loan amount required.

Loan Terms: interest rates, arrangement and other fees will apply. A conversation with one of our Investment Managers will help guide you with these important aspects.

Term: loan terms of up to 15 years.

Repayment: We will work with you to find an affordable and flexible package that works for you.

Security: Security for the loans should be taken where available, however, funding can be provided on an unsecured basis.


SIS Growth Challenge 2022

Join us on Thursday 24th February to find out more about the SIS Growth Challenge 2022.