Increased loan finance deals is boosting Scottish third sector
Last year was a bumper one for social investment, according to a leading provider.
Social Investment Scotland (SIS) either secured or loaned more than £23 million in 2014, a record amount for the body.
The funder itself lent £7.5m to 45 social enterprises, charities and community organisations making a total of £48.9m given out since it started in 2001.
Nick Kuenssberg, chairman of Social Investment Scotland, said: “While we have succeeded in securing significant funding from more traditional investment sources, we have also focused on trying to unlock other sources of capital to help to fuel the growth of Scotland’s third sector.
"That’s one reason why we recently launched SIS Community Capital - Scotland’s first social investment fund for individual investors, backed by social investment tax relief.
SIS is in a strong position to continue connecting capital with more communities - Alastair Davis
“By tapping into the demand from high net worth individuals to invest their money in social causes, we can access a potentially significant additional pool of capital, which will help us to provide affordable loans to social enterprises and charities.”
Highlights last year included the launch of the new Social Growth Fund financed by £16m from the Scottish Government and Big Society Capital, £4m of which has already been committed to third sector organisations.
Alastair Davis, chief executive of Social Investment Scotland, added: “Over the past year we have seen a step change in Scotland’s social investment market with marked increases on both the supply and demand sides.
"More capital is being injected into Scotland’s third sector than before and greater numbers of social enterprises and community organisations are looking at investment to help fund growth.
"With this significant increase in funds under management, SIS is in a strong position to continue connecting capital with more communities across Scotland.”
