​Sums of between £25,000 to £100,000 available to social entrepreneurs

Social enterprises are being encouraged to apply to a new fund offering loans of £25,000 to £100,000.

SIS Community Capital, run by Social Investment Scotland, is composed of money raised entirely from private investors and launched in May with a target of raising £500,000.

The fund provides affordable unsecured finance over a six year term, enabling organisations to develop their business and focus on delivering social impacts before repayments of the loan capital begin.

Loans are structured to allow social entrepreneurs to generate income and use cash flow to build revenues paying just interest only in the first three years at an affordable rate of just six per cent per annum.

Alastair Davis, chief executive Social Investment Scotland, said: “SIS Community Capital will fast track the growth ambitions of up to 10 social enterprises across Scotland.

"By providing growth capital at an affordable cost over a six year term, customers will have the time to be able to develop their businesses, and focus on increasing their social impacts, before loan repayments begin.

“The funding is ideally suited to established social enterprises which are looking to expand or replicate their business through, for example, buying or building new properties and equipment.

“However, there are only limited funds available so we’d encourage any interested social entrepreneurs to come and speak with us as soon as possible.”

The final deadline for investment applications is 14 October.