£400,000 distributed to companies
Seven firms benefit from social enterprise fund
Companies received between £25,000 and £100,000.
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.
Recipients get access to 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 annum.
Alastair Davis, chief executive of Social Investment Scotland, said: “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 increasing their social impacts, before loan repayments begin.”
The seven investments are:
· £100,000 to help Street League fund a new mobile team running rural academies across Scotland, helping to tackle youth unemployment through a structured football and education programme.
· £100,000 for Just Trading Scotland to fund and facilitate a step change in its growth as part of a rebranding and repackaging exercise to reach a wider retail market, providing smallholder farmers and craft workers and fair way to sell their goods.
· £50,000 towards the funding of a new community wing within Broxburn United Sports Club’s facility at Albyn Park, providing the community access to a range of social, health and well-being programmes.
· £50,000 for the Scottish Traditional Boat Festival in Aberdeenshire to support its transition from grant dependence to trading by taking on a 25 bed bunkhouse, continuing to ensure ownership and restoration of local facilities for the good of the community.
· £44,000 for Dundee Gymnastics Club 2K to finance a new lease, redecoration and gymnastics equipment, encouraging young people from all backgrounds to participate in gymnastics and advance health and well-being, education and employment in the city.
· £30,000 to support the MacDougall of Dunollie Preservation Trust in Argyll & Bute to develop its ‘heritage experience’ operation, providing more learning and volunteering opportunities for the local community.
· £25,000 for the Edinburgh Sculpture Workshop to fit out a new café space which has now been leased out to increase footfall and generation income.
NCM Fund Services, based in Edinburgh, is responsible for ensuring compliance of all FCA regulated activities of the fund.