SIS Community Capital invests £400k in seven social enterprises
Social Investment Scotland has successfully completed the divestment of SIS Community Capital, a pioneering social investment fund which raised £400,000 entirely from private investors.
Seven social enterprises based in Scotland, which are all making significant social and environmental impacts within their local communities, have secured investment of between £25,000 and £100,000 from a group of twenty seven private investors.
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 anum.
Alastair Davis, Chief Executive of Social Investment Scotland
“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 their social impact, before loan repayments begin.”
£100,000 to help fund a new mobile team running rural academies across Scotland, helping to tackle youth unemployment through a structured football and education programme.
To tackle the problem of youth unemployment in a structured football and educational programme.
“SIS have provided us with a flexible loan option at a lower interest rate, which will help fund Street League’s growth even further”
Lesley Caron, Finance Director
Just Trading Scotland
£100,000 to fund and facilitate a step change in their growth as part of a rebrand and repackaging exercise to reach a wider retail market.
To use trade to help grow a global supply chain that gives smallholder farmers and craft workers a fair and equitable way to sell their goods.
The loan appeared perfectly designed to support us in our growth; it came at a vital time to allow us to leverage on our success so far and get on with building a resilient and profitable enterprise.
Malcolm Shannon, Treasurer
Broxburn United Sports Club
£50,000 to contribute to the funding of a new community wing within their facility at Albyn Park.
To give a home base for 18 member clubs of the Broxburn United Sports Club whilst providing the community and a range of beneficiaries with a base to access a wide range of social, health and well-being programmes and activities
Without this investment, the whole project worth in excess of £500,000 would not have gone ahead.
Alan Cunningham, Secretary of the Board
MacDougall of Dunollie Preservation Trust
£30,000 for operational funding to scale up and develop the Dunollie Project Ltd social enterprise.
Conservation of the site to provide high quality heritage experiences and engagement with the community through learning and volunteering opportunities for vulnerable young people and adults, retired local people and those with a special interest in heritage.
The board and the management team were delighted to receive this investment and see it as a recognition of our work and an endorsement of what we do.
Jane Isaacson, Sustainability and Development Manager
Scottish Traditional Boat Festival
£50,000 working capital to support the transition from grant dependence to trading by taking on a 25 bed bunkhouse, ‘The Sail Loft’ due to open in summer 2016.
To ensure ownership and restoration of local facilities for the good of the community, by advancing education of the maritime and cultural heritage of the North East, through preserving traditional craft skills, musical traditions and historically significant artifacts and buildings.
The loan contained sensible and practical conditions which reflected a true understanding of our sector.
Roger Goodyear, Chairman
Edinburgh Sculpture Workshop
£25,000 to fit out a new café space which has now been leased out to increase footfall and generate a new commercial income stream.
To help artists develop sustainable careers in the arts and contribute to making Scotland a desired destination for talented visual artists. They also aim to make art accessible for all individuals regardless of circumstances.
The flexible patient terms of this investment were crucial in being able to take this project forward.
Irene Kernan, Director
Dundee Gymnastics Club 2K
£44,000 to finance a new lease, redecoration and gymnastics equipment.
To encourage young people from all backgrounds to participate in gymnastics and thereby advance health and well-being, education and employment in Dundee.
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