Social Investment Scotland secures £3.5m BBB funding

Social Investment Scotland (SIS) has secured £3.5 million from the British Business Bank to expand access to finance for underserved smaller businesses across Scotland through the Bank’s Community ENABLE Funding programme.

The Edinburgh-based lender has become the eighth Community Development Finance Institution (CDFI) accredited under the programme and the first with a dedicated focus on supporting businesses in Scotland.

The funding will enable SIS to provide loans ranging from £25,001 to £125,000 to smaller businesses, charities and social enterprises that may struggle to secure finance from mainstream lenders.

An initial pilot phase will target businesses across several local authority areas, including Glasgow, Argyll and Bute, West Dunbartonshire, North Ayrshire, South Ayrshire, East Ayrshire and Inverclyde.

The British Business Bank said the accreditation supports its ambition to strengthen the UK’s CDFI sector while improving access to finance in communities that are often underserved by traditional lenders. Community ENABLE Funding aims to support up to £150 million of lending during its first two years by increasing funding available to social impact lenders, which then provide finance directly to local businesses.

SIS brings more than 25 years of experience in responsible, impact-led lending, supporting social enterprises, charities and smaller businesses across Scotland. The organisation recently led the Community Investment Enterprise Fund, which brought together Lloyds Bank, Better Society Capital, Triodos and four CDFIs to invest £72 million into around 750 businesses across England and Wales.

“Expanding the Community ENABLE Funding programme across the UK’s nations and regions is central to our mission, so we are delighted to welcome Social Investment Scotland as the programme’s eighth accredited lender.

“Social Investment Scotland has a strong and trusted track record in the region, and we are confident that their local insight will help break down barriers to finance for a wider pool of entrepreneurs, supporting job creation and enabling them to realise their full potential.”

“We promised Scotland would be next when we launched the Community Investment Enterprise Fund to help CDFIs support small businesses in England and Wales. With that fund now fully deployed, this accreditation brings that ambition closer to home.

“Through the Community ENABLE Funding programme, we can reach small businesses across communities in Scotland that are often underserved by mainstream lending, giving them the capital they need to grow, create jobs and build resilience in their local economies.

“We’re proud to be working with the British Business Bank and a strong network of referral partners to make sure this funding reaches the businesses and communities who will benefit most.”