Social Investment Scotland secures £3.5m from the British Business Bank to support Scotland’s smaller business community

The British Business Bank has allocated £3.5m to Edinburgh-based Social Investment Scotland (SIS) to support underserved smaller businesses across several areas within Scotland, with loans ranging from £25,001 to £125,000. 

SIS is the 8th Community Development Finance Institution (CDFI) lender accredited by the British Business Bank under its Community ENABLE Funding programme and the first with a dedicated focus on Scotland. 

SIS offers debt finance and support to underserved charities, social enterprises and smaller businesses that may find it difficult to access finance from mainstream lenders. 

CDFIs typically have strong, local knowledge of the businesses they support and the communities they reside in. As such, they are well placed to help remove barriers to accessing finance experienced by businesses, which can unlock the potential in those communities. 

One of the key objectives of the British Business Bank’s Community ENABLE Funding programme is to help develop the CDFI sector across the UK.  The programme will provide a significant boost, supporting up to £150m of lending over its first two years. 

The Community ENABLE Funding programme works by increasing the availability of funding to social impact small business lenders, including CDFIs, who in turn can provide that funding to the smaller businesses they serve in local communities. 

SIS is an established CDFI, with more than 25 years’ experience delivering responsible, impact-led lending to social enterprises and charities across Scotland. SIS recently led the delivery of The Community Investment Enterprise Fund, bringing Lloyds Bank, Better Society Capital, Triodos and four CDFIs together as a fund manager to invest £72m into 750 businesses across England and Wales.  

Funding from the Community ENABLE Funding programme will be deployed by SIS across several key local authorities for an initial pilot phase including Glasgow, Argyll and Bute, West Dunbartonshire, North Ayrshire, South Ayrshire, East Ayrshire and Inverclyde. 

Reinald de Monchy, chief banking officer at the British Business Bank, said: “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 8th 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.” 

Alastair Davis, CEO of Social Investment Scotland, said: “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.”