Responsible finance provider Social Investment Scotland (SIS) has for the first time surpassed £50 million in active loans and investments to social enterprises, charities, community groups, and mission-led businesses during a single year, according to its latest annual Impact Report.
Total active loans and investments for the year to March 2024 reached a record-breaking £51.1 million among 201 social enterprises, an increase of £3.6 million on the previous year.
“Throughout the 12-month period, 4.5 million people benefitted from the projects supported by SIS with organisations making an impact in the key areas of alleviating poverty, supporting the transition to net zero and growing the economy – all of which have been identified as key priorities for the Scottish Government,” said SIS.
“Around one-third (32%) of SIS customers secured loans under £50,000, underlining its successful efforts to connect smaller, local charities and community groups with critical finance. The average loan drawn down over the course of the year was £210,207.”
SIS played a leading role in delivering the Community Investment Enterprise Fund (CIEF), a partnership with Lloyds Bank, Better Society Capital, and three community development financial institutions. This £62 million fund will provide vital capital to around 800 small businesses, supporting approximately 10,500 jobs in England and Wales.
The ambition is to create a similar fund for Scotland in future, offering a means of building wealth in communities and helping small businesses to thrive.
As the lead member of the Financial Inclusion for Scotland (FIFS) group, SIS also played a key role in the launch of Scotland’s first co-produced, nationwide financial inclusion strategy, aimed at enhancing the financial wellbeing of our most vulnerable people and enabling access to mainstream financial services.
Social Investment Scotland CEO Alastair Davis said: “Our mission to build an impact economy is underpinned by a commitment to creating lasting and meaningful change in the lives of individuals and communities across Scotland and the rest of the UK.
“We firmly believe that social enterprises are uniquely positioned to tackle the nation’s most pressing priorities, and this report highlights the tangible difference our investments and programmes are making.
“From working towards eradicating child poverty and enhancing public services—demonstrated by our support for FARE Scotland’s transformation of a state-of-the-art community sports facility in Easterhouse, Glasgow — to addressing the climate emergency by supporting the Radio City Association to construct Scotland’s first subsidy-free 100% community-owned onshore wind turbine.
“This year saw us hit another record figure for active loans and investments, but the impact we’ve achieved is a shared success among our customers, partners, stakeholders and the communities we work with. We are focused on continuing to make an impact over the next 12 months.”