Social Investment Scotland tops £50m funding milestone.

Responsible finance provider Social Investment Scotland (SIS) has achieved a significant milestone by surpassing £50 million in active loans and investments during a single year. This achievement is highlighted in SIS’s latest annual impact report, showcasing the organisation’s commitment to supporting social enterprises, charities, community groups, and mission-led businesses.

Throughout the fiscal year spanning from April 2023 to March 2024, SIS reached a record-breaking total of £51.1 million in active loans and investments across 216 social enterprises. This marked an increase of £3.6 million compared to the previous year, demonstrating the growing impact of SIS’s initiatives.

Over the course of the year, projects supported by SIS benefitted 4.5 million individuals, focusing on areas such as alleviating poverty, facilitating the transition to net zero, and fostering economic growth. These areas align closely with the key priorities set forth by the Scottish Government, reinforcing SIS’s role in driving positive change.

Notably, 32% of SIS customers secured loans under £50,000, emphasising the organisation’s success in connecting smaller, local charities and community groups with vital financial support. The average loan drawn down during the year stood at £210,207, reflecting the diverse range of beneficiaries and projects supported by SIS.

As part of its strategic action plan to amplify its vision for an impact economy, SIS played a pivotal role in delivering the Community Investment Enterprise Fund (CIEF) in collaboration with partners such as Lloyds Bank and Big Society Capital. This £62 million fund is set to provide essential capital to around 800 small businesses, ultimately supporting approximately 10,500 jobs in England and Wales.

Looking ahead, SIS aims to establish a similar fund for Scotland, with a view to empowering local communities and enabling small businesses to thrive. Furthermore, as the lead member of the Financial Inclusion for Scotland (FIFS) group, SIS contributed to the launch of Scotland’s first co-produced, nationwide financial inclusion strategy.

Alastair Davis, CEO of Social Investment Scotland, expressed the organisation’s commitment to creating lasting and impactful change across Scotland and the wider UK. Davis emphasised the unique ability of social enterprises to address pressing societal issues, citing examples such as FARE Scotland’s transformation of a community sports facility in Easterhouse, Glasgow, and support for sustainable energy projects like the Radio City Association’s wind turbine initiative.

One of the beneficiaries of SIS’s support, FARE Scotland, received £1.6 million in funding to revamp a former sports park in Easterhouse into a modern community sports and leisure centre. The facility now boasts upgraded football pitches, new floodlights, and enhanced amenities to promote sports participation and overall wellbeing within the local community.

Paul Humphreys, acting CEO of FARE Scotland, commended the support from SIS, highlighting the positive impact of the new sports facility on youth and adult teams as well as the broader community. This successful collaboration underscores the tangible outcomes of SIS’s investment efforts and underscores the shared commitment to making a difference in communities.