Social What?

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Social Investment is an investment that is made

in a third sector organisation with the

expectation of both a financial and a social return, where the

financial return is at the very least the repayment of the capital

amount (but more often than not with interest as well) and

the social return measured using a series of indicators.

Who is SIS?

• We are a social enterprise and registered charity in our own right i.e. We reinvest /

recycle money to further support the development of the third sector

• We are the largest not for profit provider of business loans to the third sector in

Scotland

• Our aim is to connect capital with communities by offering flexible loans that

are specifically tailored to the third sector organisations

• We have worked with Resilient Scotland in supporting the Start & Grow Fund, and

are now partnering with Making Enterprise Happen

Why Social Investment?

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• Investing in your mission

• For the amount you need

• When you need it

• Hidden costs of grants e.g. time taken to source and report

Social Investment: some examples

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Aberdeen Gymnastics Trust£35k all purpose loan to allow for the purchase of a range of high quality

equipment

Foxlake AdventuresScotland’s only cable wakeboard park, £40k all purpose loan to assist with

working capital.

Just trading ScotlandShort term bridging facility of £8,000 to assist with the purchase of stock after

receiving purchase order for jams / chutneys from Oxfam worth £27,000

The Centre of Therapy and Counselling StudiesProvides Cognitive Behavioural Therapy sessions. Loan of £100k over 10

years; Triodos provided £350k over 25 years

MEH : Who is eligible

We will invest in third sector organisations that have the capability to

make sustainable social impacts.

These must… be based and operate in one of the 13 eligible areas

operate within the Scottish Third Sector i.e. charities,

community/ voluntary organisations, non-profits, social enterprises

reinvest their profits for their communities benefit

be allowed to borrow under their organisation’s constitution

MEH: A Step by Step Guide

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• Step 1: Are you permitted to borrow?• Check your constitution

• Step 2: How to apply• Expression of Interest

• Step 3: Legal Process and Documentation• Including loan agreement (`Facility Letter’)• Reporting requirements

• Step 4: Security may be required• Against Property and / or Floating Security

MEH: What we will do

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• We will work with you to put together the most suitable finance package.

• Information we may need;• business plan;• last three years annual accounts;• up to date management accounts; and • any cash flow forecasts/projections.

• Each successful proposal will be provided with full details of the terms and conditions plus a legal facility documentation to be signed.

• Confused by jargon? Just ask!

FAQs

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• Can I have another lender?

• What happens once the investment is in place?

• What is a Financial Covenant?

• What if it goes wrong?