Post on 16-Dec-2015
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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
• Supported almost 200 3rd sector organisations in investments totalling just under
£43 million
• 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
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
Our work with Resilient Scotland
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• We have worked with Resilient Scotland in supporting the
Start & Grow Fund, and are now partnering with Making
Enterprise Happen
• SIS provides our due diligence and financial expertise to the
Making Enterprise Happen process
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!