Impact Report April 2020-March 2021

BUILDING AN

IMPACT ECONOMY

Contents

02 Welcome

03 At A Glance

Core Activities:

06 Communities

08 Market Building

14 Access to Finance

16 Building an Impact Economy

18 20 Years of SIS

19 Fund Highlights

21 A Final Word

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Welcome to SIS’s latest Impact Report. This is the first year of our Building an Impact Economy strategy. On the following pages we explore progress through our key themes of working with Communities, capacity building enterprises through our Market-building activities and bolstering the growing network of Responsible Finance Providers through our Access to Finance funds. The work of SIS subsidiary SIS Ventures will be explored in detail in a future report.

We are proud that our core investment activity remains focused on working alongside Scotland’s essential third and social enterprise sectors. We have worked hard to create and deliver financial products and programmes to support organisations throughout

what has undoubtedly been an exceptional and difficult period.

SIS activities continue to reach all 32 of Scotland’s local authority areas and connected more Scottish communities with mission-aligned investment and support.

This year, we have also been able to reflect on SIS’s development over time, and how our growth of the last 20 years has enabled greater social impact through proactive and relentless pursuit of our mission – to connect capital with communities. The SIS timeline shows us growing to a position where our investees and those we work with touch the lives of at least 1.9m people each year. It is this social impact that drives the team to work with existing and new partners in existing and new ways to make a real difference to the lives of the people our customers serve; whether that be through

the provision of investment or as a beneficiary of our support programmes.

Throughout the 10 years of our forward strategy, we will measure progress towards the strategic vision, using Impact Management Project standards and toolkits to guide our practice. Context for the strategy, and related impact dimensions, are out set in the Building an Impact Economy section.

We thank all our partners for their commitment and support and, alongside our customers and peers, look forward to continuing to build the kind of world where positive impacts for people and planet come first.

We hope you enjoy discovering more about our work.

With warmest wishes from the team at SIS.

WELCOME

Last year we extended the timeframe of our Impact Report over 15 months, April 2019 – June 2020, to reflect COVID-19 activities and implications. This year’s report returns to a 12-month period, April 2020 – March 2021, and so includes some data also reported in the previous report.

active loans and investments in 212 social enterprises

£38,855,450

April 2020– MARCH 2021

the number of times social entrepreneurs, leaders, and other supporters attended SIS training events.

12% £50,000of SIS loan customers secured loans under

£4.6M COVID-19 response funds deployed to 50 social and third sector enterprises.

Percentage of active loans and investments by outcome area

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“A heartfelt huge thank you to all at SIS for the support you have given us during these difficult times. I can confirm receipt of the loan, thus enabling me to pay 45 staff members. A small but significant certainty in uncertain times that will hopefully keep them all solvent and reassured that those that are furloughed will have a job to return to and those who are still working are highly regarded.”Alison Forsyth, All Cleaned Up

1,627Citizenship & Community

Conservation of the Natural Environment

Employment, Training & Education

Family, Friends& Relationships (1%)

Housing & Local Facilities (2%)

Income & Financial Inclusion

Mental Health & Wellbeing

(1%)

(3%)

PhysicalHealth

Arts, Heritage,Sports & Faith

9%3%

6%

13%62%

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people benefitted from SIS customers’ activities this year1.9M

April 2020– MARCH 2021

SIS activities reach enterprises, people and communities in all 32 of Scotland’s local authority areas.

Investments this year also reached communities in South Yorkshire, West Yorkshire, Wolverhampton and Nottinghamshire.

Some of the

enterprises we work with improve the lives and circumstances of people and communities internationally.

98%of SIS’s loan customers this year are based in Scotland.

reach of ACTIVITIES

Alongside social entrepreneurs from

HOW OTHERS SEE US

Average customer satisfaction rating (4.8/5)

of customers say the team understands the social enterprise sector.

96%

of customers would recommend SIS to other social or mission-driven enterprises.

90%

Professional1

2

4

5

Supportivegenerally and in times of difficulty

Approachable

Open and honest

Trustworthy

TOP 5 WORDSor phrases used by customers to describe SIS

3

REFLECT AND LEARNThrough management of three COVID-19 response funds, our active investments increased by 38% this year, and we reached out to support organisations new to SIS and social investment. Our experience of quicker application methods for smaller loans during the pandemic is helping us design new longer-term processes for these loans. It is encouraging that since all SIS services moved online, the top five words used to describe SIS remain the same positive responses as those pre-pandemic, and this will influence how are services are delivered in the future.

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Scotland, the SIS Retail Academy welcomed others from Wales, Northern Ireland and England.

Calculated using a combination of actual and estimated figures, and adjusted for periods of lockdown.

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Established in 2017, Well-Fed has expanded and grown from a community café to a home delivery service and commercial catering facility in Glasgow.

Well-Fed helps people in the local community who are at risk of food insecurity and facing social isolation.

In 2020, Well-Fed’s Managing Director Chris Gray was one of 20 social enterprise leaders to attend and complete our Ambitions for Recovery programme. This programme offered support, mentoring, and coaching to help navigate the challenges of the COVID-19 pandemic, as well as looking towards recovery. Well-Fed also benefitted from £25,000 of Third Sector Resilience Funds, managed by SIS, and backed by the Scottish Government.

CASE STUDY

WELL-FED

loan secured£25,000 AMBITIONS FOR RECOVERY

PROGRAMME PARTICIPANT

Well-Fed engagement with SIS activities

‘Ambitions for Recovery gave me the confidence to enter contract negotiations and procurement discussions with Glasgow City Council, and we now provide catering services for hotels in the city that have been providing accommodation for homeless people during the pandemic.

By providing 700 meals per day as part of this contracted work, we have been able to provide as many as 500 extra meals per day for people in the local community.’Chris Gray, Managing Director

www.well-fedscotland.org.uk

Community Activities

Well-Fed Community Café

of new investments approved

28 customers have loans under

loan funding drawn

£10,625,875

£50,000

£18,610,505KEY FACTS AND FIGURES

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“SIS provides more than just financial support: they work closely with investees with a clear eagerness to see them succeed, and provided a wide range of business support and advice. They truly are one of kind!”

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COMMUNITIES

The Communities Team provides tailored financial solutions and support so that social enterprises can achieve their impact aims. Through a relationship-based approach, Investment Managers work closely with social enterprises to develop plans and funding proposals, advising where and how business practices can be developed to ensure plans succeed. The team also works alongside other funders and support providers to make sure customers have maximum support from those who can provide it.

Loans and support for Scotland’s social enterprises.

REFLECT AND LEARN

SIS customers have faced continuous change and deep challenges – financial, operational, and emotional - over the 12 months of this report. The availability of emergency interventions, by SIS and others, provided flexibility and funds to keep the ‘lights on’. At SIS, we were able to tailor our financial support so that social impact and jobs were protected, and we were able to help more vulnerable people by financing customers’ plans to provide COVID-19 response services. We gained a heightened appreciation of working in partnership with key stakeholders, maximising impacts and efficiencies, and will continue to collaboratively develop future funds and initiatives.

Edinburgh Printmakers (EPM) is a centre for printmaking and the visual arts headquartered in Edinburgh.

EDINBURGH PRINTMAKERS

“After a hugely uncertain year, we are delighted to have secured this investment from SIS to help us reopen, rebuild and reimagine our programmes. As we look to the future, we are focused on how we can support artists and communities that have been badly impacted. An expansion of our education programmes, along with subsidised facilities and new residencies for artists, are just some of the projects that we will deliver over the next 18-months, and we are grateful for SIS support to help us achieve these ambitions.”Mungo Campbell, Chair of EPM

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CASE STUDY

Having moved to its new £11m Castle Mills home in Spring 2019, this leading arts charity was able to offer a range of activities, including open access to world-class printmaking; two galleries; a shop selling original prints and handmade products; hire spaces for meetings, events and learning activities; as well as a café and community garden. In its first six months, it welcomed 46,000 visitors – then the global pandemic hit, and it was forced to close its doors.

In late 2020, EPM approached SIS for support in increasing its social and cultural impact. SIS was able to provide a loan of £959,000, enabling the enterprise to expand the variety and scale of services offered to communities, both locally and across Scotland.

The funding came at a critical time for EPM as the organisation prepares for what is likely to be further growth in visitor numbers and demand for its services as COVID-19 lockdown restrictions ease.

www.edinburghprintmakers.co.uk

Edinburgh Printmakers, Castle Mills

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MARKET BUILDINGSIS’s market-building activity provides projects, programmes, and support to help communities and social enterprises develop capacity, confidence, and resilience. We help enterprises maximise opportunities and navigate challenges along the way, with a particular emphasis on expert content, and cohort and peer support.

Made possible through a mix of funders, all of our market-building events this year were delivered online.

Connecting social enterprises with expertise and opportunities.

attendances at SIS training events by social entrepreneurs, leaders, and other supporters.

1,627 workshops, webinars and masterclasses delivered.

support initiatives designed and managed.

83 15

KEY FACTS AND FIGURES

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REFLECT AND LEARNThe early stages of the COVID-19 pandemic demanded a highly focused, proactive and listening approach. We developed online content, at speed, and high attendance rates at early events helped target and shape content and speakers. Taking our weekly Ambitions sessions online, as soon as we entered lockdown, was significant for the third sector leaders taking part. The trusted space, which has always been part of the Ambitions programme, importantly now allowed leaders to be honest, open and reflective - with mutually supportive peers – through a time of adversity. As we emerge from the pandemic we will consider how important digital delivery, in shorter bite-sized formats, is to support the diversity of speakers and delegates who are engaging with us.

This year we welcomed 31 social enterprise leaders to our online Retail Academy.

FUNDED BY

100%77 90%of 2020 delegates would recommend the SIS Retail Academy to others.

SIS Retail Academy participants since 2016.

of 2020 participants felt better connected to those who can help them achieve their impact aspirations.

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Uist Wool attended our 2020 online Retail Academy. The photo is of a Zwartbles sheep breed in Stilligarry, South Uist.

“I‘ve come away with a some incredible insights, and filled with renewed enthusiasm for what the business can become and what social enterprise can do to make a difference.”

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SIS RETAIL ACADEMYPROGRAMME FEATURE

The week-long SIS Retail Academy experience supported leaders to respond to the changing global and local conditions, refining strategies, plans and routes to market. The Academy also connected the leaders to advisers and peers who can help with how to scale their operations.

To help understand the Retail Academy’s longer term impacts, we have also gathered feedback from this year’s cohorts and previous participants. These leaders tell us that connecting with peers and experts who bring an authentic desire to help at the time, and in the future, creates the confidence and conditions for them to grow their enterprise models. These connections are invaluable as social enterprises grow and develop their operational practice to deliver at scale.

We continue to evolve how we create and maintain these connections for and with participants, especially as we continue our online format.

www.uistwool.com

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Shetland Soap CompanyShetland Soap Company (SSC) was established almost 20 years ago by the social enterprise COPE Ltd with the belief that everyone, regardless of disability, should have the opportunity to work.

Shetland Soap Company is one of five organisations owned by COPE, providing employment and skills development for adults with learning difficulties or autism spectrum disorders, with all profits raised being reinvested to achieve this vision.

2016 Alumni

RETAIL ACADEMY CASE STUDY

www.shetlandsoap.co.uk

After 10 years, SSC had created a quality product, with the potential to deliver an even greater impact for those they had set out to support. However, they had several hurdles to overcome, including broadening their retail market and moving to a more enterprising business model.

In 2016, Shetland Soap Company became part of the first-ever SIS Retail Academy, and their participation was a pivotal moment in ensuring success moving forward. SSC learnt from peers about their own journeys and lessons learnt;

developed their customer insight skills; met with corporate buyers who provided feedback and advice on products; and learnt about trend forecasting. Overall, SSC gained the skills and knowledge needed to transform Shetland Soap Company.

Since the Academy, Shetland Soap Company has gone from strength to strength. They have undergone a full rebrand, launched a new website, and developed a significantly larger, and loyal, customer base.

“The past five years have been transformational for Shetland Soap Company, and we have been able to make the most of it due to the retail insight and marketing knowledge we’ve gained through the Academy. Had it not been for the SIS Retail Academy, we would have made several fundamental mistakes and we wouldn’t be where we are now.”Ingrid Webb, CEO Shetland Soap Company

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Shetland Soap Company production

Strawberry Smoorikens collection

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SOCIAL STORIES CLUBSocial Stories Club is a speciality gifting company that curates socially conscious hampers in which every item supports a different social cause – from teas that support education for young girls in tea-growing regions to relishes that reduce food waste.

Founders Karis Gill and Aayush Goyal launched the business from a student flat in December 2018. To date, they have re-invested over £160,000 in the social enterprise economy, provided over 600 hours of employment to individuals with barriers to employment, and supported over 30 social ventures.

Before attending the Retail Academy in 2019, they were curious to understand how to work with

2019 Alumni

“I have always struggled with pitching, but Retail Academy helped me re-frame my presentation, giving me the confidence to succeed and grow our B2B customer base. We now serve over 100 companies around the world, have over a 150 five-star reviews, and have appeared in publications like Sunday Times, Cosmopolitan, and Glamour magazine.” Aayush Goyal, Co-Founder

RETAIL ACADEMY CASE STUDY

www.socialstoriesclub.com

large retailers and how to create a product that consumers would purchase from supermarket shelves.

Over the course of the Retail Academy, Social Stories Club was able to visit an ASDA warehouse to learn more about incoming inventory, orders, and planning stock based on future weather predictions. They also networked with speakers and fellow entrepreneurs, and now regularly purchase from fellow social enterprises The Good Wash Company, Grace Chocolates and Shetland Soap Company to fulfil their hampers.

Social Stories Club founders Aayush Goyal and Karis Gill

“The key takeaway for us was how to work with large businesses, and we’ll certainly be looking to Social Investment Scotland as we develop our growth strategy.” Aayush Goyal, Co-Founder

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SEAbuckthorn Scotland

RETAIL ACADEMY CASE STUDY

Whilst working as a humanitarian aid worker in Pakistan in 2010, Kirstie Campbell first learned of the benefits of seabuckthorn. Used locally as a survival food source during the harsh winters, it wasn’t until she returned home three years later that she began researching this highly nutritious plant growing nearby in East Lothian. Despite its spiky demeanour, she discovered its environmental impacts in terms of soil and water conservation, land reclamation, and soil enrichment, as well as its amazing health benefits.

w

www.seabuckthornscotland.com

Establishing community interest company Seabuckthorn Scotland in 2018, the team forage for seabuckthorn in cooperation with the council, helping them to manage its growth while aspiring to make the freshest, tastiest and most nutritious experience of a Scottish super-fruit.

The raw juices are prepared from carefully selected berries, which are then frozen within 30 minutes of harvesting. They are then cleaned and cold pressed in small batches to order, available from specialist local distributors.

“I feel lucky to have attended Retail Academy. We had the opportunity to share our products with the delegate community, receiving important customer feedback on the branding, packaging and flavour of our Buck Russian shots. The feedback was just what we needed to support our ongoing marketing efforts. I’m still processing the huge variety of learning from the Academy, but it has provided me with the sales toolkit we need to build our business online for the future.”Kirstie Campbell, Founder of Seabuckthorn Scotland.

2020 Alumni

Seabuckthorn Scotland products

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Ambitions for RecoveryThis year’s Ambitions masterclass series supported leaders of Scottish social purpose businesses navigating pandemic responses. All those attending who provided feedback said they feel more confident to lead their area of work and/ or enterprise after attending.

Building Business Impact In partnership with Scottish Enterprise, this series of workshops introduced ways to increase positive impact - for people and planet - through all business practices, encouraging enterprises of all kinds to adopt responsible business practices as standard.

Market-BuildingMORE ABOUT

We work with funders and partners to support growth across the social enterprise sector.

Raising Investment for Creative Industries This series was delivered in partnership with Creative Scotland for arts, culture, and heritage third sector and social enterprises to give them an understanding of social investment.

Understanding Social Investment Workshops and webinars giving individuals, charities, social enterprises, community enterprises, advisors, and intermediaries an understanding of social investment and how it can enable greater growth, sustainability, and social impact.

Just EnterpriseAs part of the Scottish Government’s nationally funded Just Enterprise programme, SIS co-designed and delivered the Preparing for Social Investment workshops, helping others understand more about social investment.

“It’s been a total game changer. Information sessions are led by people who know what they are talking about and have walked the walk.”

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“We are now able to deliver online training, thanks to the Ambitions programme partnership with Baillie Gifford. To date, over 30 people have achieved qualifications in construction.”

SIS BriefingsA series of briefings, with expert and sector-specific speakers, on emerging themes and challenges facing social leaders. Critical conversations on mergers, restructures, and routes to new markets helped audiences respond to the demands of changing business environments during the pandemic.

Talking HeadsA female-led programme sharing insights, inspiration and tools to help consider wider implications of the changing conditions and develop business practice in response to the world around us.

ACCESS TO FINANCESIS acts as a fund manager, mobilising and deploying funds into other responsible finance providers who, in turn, offer finance to enterprises and individuals who are unable to secure them from mainstream financial lenders.

Those who benefit are usually people excluded from traditional bank and credit services, and small businesses supporting local social and economic impact, often based within communities experiencing multiple challenges or disadvantages.

Bolstering the growing sector of responsible lenders across the UK.

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funding drawn£10,720,000

KEY FACTS AND FIGURES

REFLECT AND LEARNEnterprises funded through the Community Investment Enterprise Facility (CIEF) continued to offer support and advice to their enterprise customers. This was invaluable, as the demand for community investment and affordable credit were both positively and negatively affected at different times throughout the year. Over the period, the impact of affordable credit solutions was amplified, as access to fair and affordable credit was vital to many families during furlough and periods of unemployment.

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Working across Yorkshire, The Humber, Lincolnshire and the North Midlands, Finance For Enterprise understands entrepreneurship can act as a catalyst to drive positive change by empowering individuals, creating and safeguarding jobs, and ultimately contributing towards the regeneration of Britain’s forgotten communities.

Today, Finance For Enterprise provides a range of tailored business lending packages, helping businesses to access up to £250,000 in loan funding.

Finance for Enterprise Launched in 1985 as one of the UK’s first enterprise agencies, Finance For Enterprise has established itself as one of the most trusted and respected lending providers in the North of England.

the finance options open to them, and through the lending application process.

Finance For Enterprise acted proactively to help businesses devastated by the COVID-19 pandemic to adapt and evolve to meet the challenges they face. Finance for Enterprise is an accredited lender under the British Business Bank’s Recovery Loan Scheme, Start Up Loans UK and the Northern Powerhouse Investment Fund.

“When small businesses prosper, the whole of society benefits. Through our work with Social Investment Scotland we’ve been able to help many aspiring entrepreneurs transform ideas into a reality, help small businesses to overcome the barriers to growth and seize new opportunities; as well as helping to safeguard jobs at risk as a result of the COVID-19 pandemic.”Andrew Austwick, Managing Director, Finance For Enterprise

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CASE STUDY

Over half of the businesses Finance For Enterprise supports are located in the top 35% deprived Local Super Output Areas (LSOAs) or in the Top 50 deprived Local Authorities based on measures of deprivation including income, employment, health, education, access to services, housing and crime.

Finance For Enterprise’s team of dedicated Investment Managers draw upon their knowledge and expertise to guide business owners through

Andrew Austwick, CEO Finance for Enterprise

www.finance-for-enterprise.co.uk

During the past twelve months, Finance For Enterprise has successfully delivered £15.2m in loan funding. The net result of this work has seen 287 businesses supported and over 1200 jobs created or safeguarded. They have also continued to support and nurture new entrepreneurs, successfully delivering 157 Start Up Loans.

IMPACT ECONOMYWe continue to collaborate with like-minded people and organisations, sharing our networks, connections and expertise to help build a stronger impact economy.

Our team regularly contributes to this agenda through participation in advisory groups, boards, round tables, and industry initiatives – putting the impact agenda firmly in the thoughts of intermediaries, agencies, and enterprises.

SIS has been nurturing and growing the social enterprise and third sectors since 2001.

BUILDING AN

Community and Renewable Energy Scheme (Local Energy Scotland)Flexible Childcare Services ScotlandLINC Scotland Lower Impact Living CICNorth East Social Investment Company Responsible Finance Climate Action Working GroupScotland CAN B Impact Leaders ForumScottish Children’s Lottery Scottish Edge Social Enterprise ScotlandSocial Investment Diversity GroupUnited Nations Sustainable Development Goals Scotland Network

Expert Contributors to:Converge Creative Entrepreneurs ClubFoundation Apprenticeships ProgrammeFunders Forum Frontline GroupManagement, Governance and Ethical FinanceRural Housing in ScotlandScottish EnterpriseSocial EdgeScottish GovernmentStart-Up SummitWomen’s Enterprise Scotland

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A few of the ways we did this in 2020-2021 are:

Board and Advisory Groups

Research Projects

SIS has supported and collaborated on research and development projects to shape and inform future activity:

Social Enterprise and Community Wealth BuildingWorking alongside Scottish Enterprise, SIS carried out in-depth interviews with 16 community-focused social enterprises who have the track record and ambitions to scale. The report found that social enterprises already foster many community wealth-building principles, and recommends ways to maximise social enterprise growth through this approach.

Social Enterprise and the Circular EconomyThrough a research partnership with Zero Waste Scotland and Community Resource Network Scotland, we explored the potential for social enterprises to scale and progress their practices through circular economy principles and opportunities. This work informs ongoing SIS development of a Circular Economy Fund which we expect to launch in late 2021.

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Buy Social and Buy Local policy

DIVERSITY AND INCLUSION

of our suppliers are social enterprises or local businesses.

56%

This year we have taken practical steps to improve diversity and inclusion at SIS. Read about our actions here.

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Our Building an Impact Economy strategy is underpinned by a theory of change and aims to make a difference across five impact dimensions*.

BUILDING AN IMPACT ECONOMYMORE ABOUT

10 YEAR STRATEGIC VISION 2020 – 2030Building the six features of an impact economy:

SIS’S FIVE DIMENSIONS OF IMPACT

WHATOur activities connect capital with communities to create greater positive impact for people and planet.

We also support customers to adopt responsible business practices, maximising impact through every business action.

WHOWe work with social enterprises and mission-driven businesses who are committed to creating social impact, and like-minded stakeholders, to increase investment capital. We focus on reaching under-served and under-represented groups, founders and people. We work with social enterprises based in Scotland, and, where our expertise adds impact value, we partner with enterprises and other like-minded organisations further afield.

HOW MUCHOur goal over 10 years from 2020 is to provide 10,000 social enterprises and entrepreneurs with the tools, inspiration and support to create greater social impact.

The depth of impact ranges from outcomes of one-off light-touch interventions to outcomes from relationship-based programmes of support lasting more than 10 years.

CONTRIBUTIONSIS operates as part of a healthy and active business support eco-system and seeks to work in partnership with others.

We ask those we interact with if their plans would have taken place without SIS involvement and will report on this in time. We increase the flow of financial capital from investors familiar, and new to, social and impact investing.

RISKSIS was established in response to market failure, where capital was not reaching the communities who need it most.

Some customers tell us that without SIS, they would not exist, or their own customers would face greater risks, or their initiative would not progress. This includes supported businesses and those working on behalf of vulnerable stakeholders.

*https://impactmanagementproject.com/impact-management/impact-management-norms/

2016

The first SIS Retail Academy launches.

SIS achieves 4-star A+ Aeris rating.

2017

Affordable Credit Fund launched in partnership

with The Carnegie UK Trust and Scottish

Government.

Impact of SIS investments and activities reaches all

32 Scottish local authority areas.

2018

Impact investment subsidiary SIS Ventures is

launched.

SIS invited to manage Big Society Capital’s £30m Community Investment

Enterprise Facility.

2019

£17m Scottish Social Growth Fund is launched

in partnership with Big Society Capital,

Scottish Government and University of Edinburgh.

SIS signs Women in Finance charter.

2020

SIS launches 10-year strategy: Building An

Impact Economy.

SIS responds to global COVID-19 pandemic, moving

activities online, including Ambitions: From Resilience

to Recovery programme and management of dedicated

COVID-19 funds.

2021

SIS celebrates its 20th year, reaching £100m investment milestone,

and benefitting at least 1,900,000 people each

year through investments.

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20 YEARS OF SIS2021 is SIS’s 20th anniversary. As we continue to build our Impact Economy, we look forward to reaching many more milestones by 2030.

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20 Y

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SIS

2011

Loan balances reach £5m.

Alastair Davis appointed as Chief Executive Officer.

Pre-2001

A Scottish Parliament

fact-finding mission to the USA leads to

establishment of Social Investment

Scotland.

2001

SIS incorporated to provide loan finance

to charities and social enterprises.

2005

SIS granted charitable status.

SIS Futurebuilders developed, providing higher risk finance for

social enterprises.

2007

SIS appointed to manage the £30m Scottish

Investment Fund.

2010

£2m of new Community Investment

Tax Relief capital raised from

Co-Operative Bank.

2015

£16m Social Growth Fund launched in

partnership with Big Society Capital and

Scottish Government.

SIS begins long-term partnership with Asda

and secures carrier bag levy donations.

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FUND HIGHLIGHTSSince 2001, SIS has invested over £101 million in 460 organisations.

While growing and developing the range of funds, products and support SIS has on offer, our focus remains the same: providing excellent service and bespoke solutions to our customers.

Lending from just £10,000, we help organisations – no matter how big or small – sustain and grow their social and economic impact.

98% of our customers are based in Scotland.

Affordable Credit FundWith investment from Carnegie UK Trust and the Scottish Government, this £2 million fund helps not-for-profit lenders provide affordable credit to low-income borrowers.

Asda Community CapitalThis fund was designed to support early-stage social enterprises looking to access social investment for the first time. This fund is now closed.

Community Investment Enterprise Facility (CIEF)Funded by Big Society Capital, this £30 million facility invests in social lenders (CDFIs) across the UK to help small businesses create positive impact.

Credit Union Resilience Fund (CURF)Launched in response to the implications of COVID-19, this Scottish-Government-backed fund provided short-term loans to Scottish Credit Unions to respond to pandemic-related challenges. This fund is now closed.

Funds Overview

Scottish Investment Fund (SIF)This Scottish-Government-backed, £31.8 million fund has invested in 67 organisations in a range of sectors across Scotland. The fund is fully invested.

Scottish Social Growth Fund (SSGF)Phase 2 of SGF, this is a £17 million partnership between the Scottish Government, Big Society Capital and Edinburgh University providing loans from £100,000 to £1.7 million.

SIS Community Capital This innovative fund (using social investment tax relief) benefitted social enterprises looking to scale. It is fully invested.

SIS (Community Finance)Our core loan fund provides a range of flexible loans from £10,000 to £250,000, including our bridging loan product.

Social Growth Fund (SGF)A £16 million partnership between the Scottish Government and Big Society Capital, SGF provided loans from £100,000 to £1.7 million. This fund is now closed, with applications being accepted through the Phase 2 Scottish Social Growth Fund (SSGF).

SIS VenturesLaunched in 2018, SIS Ventures invests in impactful enterprises to help address society’s greatest challenges and needs. Click here to find out more.

Third Sector Resilience Fund (TSRF)Launched in response to implications of COVID-19, this Scottish-Government-backed fund provided loans to third sector organisations and social enterprises to respond to pandemic-related challenges. In a second phase of TSRF, this fund also provided Adapt and Thrive loans.

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Cumulative Investments

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Since 2001 CF SIF SGF SGF2 Asda ComCap CIEF ACF SISV TSRF CURF Totals

Investments issued £ 25,362,772 16,279,037 12,519,727 1,305,000 1,491,294 399,000 16,844,180 1,000,000 1,209,813 2,734,027 1,637,500 80,782,349

Grants issued – 16,269,078 – – – – – – – – – 16,269,078

No of new customers 281 46 22 2 45 – 4 2 8 29 21 460

No of loans 316 91 20 2 35 7 11 2 8 29 21 542

Average loan amount £ 80,262 178,891 625,986 652,500 42,608 57,000 1,910,909 500,000 151,227 94,277 77,976 149,045

Total invested £ 25,362,772 32,548,115 12,519,727 1,305,000 1,491,294 399,000 21,020,000 1,000,000 1,209,813 2,734,027 1,637,500 101,227,247

As at 31.03.21 CF SIF SGF SGF2 Asda ComCap CIEF ACF SISV TSRF CURF Totals

Investments issued £ 1,333,141 1,305,000 10,720,000 500,000 380,838 2,734,027 1,637,500 18,610,505

Grants issued – – – – – –

No of new customers 10 2 1 3 29 21 66

No of loans 19 2 4 1 3 29 21 79

Average loan amount £ 70,165 - 652,500 – – 2,680,000 500,000 126,946 94,277 77,976 235,576

Total invested £ 1,333,141 - – 1,305,000 – – 10,720,000 500,000 380,838 2,734,027 1,637,500 18,610,505

Annual AccountsOur latest annual accounts can be found here

BVCA MemberSIS is a member of the British Venture Capital and Private Equity Association

Aeris RatingSIS was the UK’s first Responsible Finance provider to undertake Aeris’s comprehensive, third-party, credit-rating assessment.

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Connecting capital with communities.Social Investment Scotland’s (SIS) mission is all about connecting capital with communities.

The capital we connect is not just financial via investment funds: it is also the human, social and intellectual capital that we convene and share with charities, social enterprises, and businesses who have a social mission at their heart. As we have found over the last year, in times of crisis, and then recovery, this convening and capitalising on connections and resources is more crucial than ever.

Since March 2020, we have been providing both investment and support to build resilience across our social enterprise and third sectors. We are starting to see some optimism as the recovery phase presents social enterprises with an opportunity to grow activity and impact and

A FINAL WORD

make an even more meaningful contribution to economic and social renewal. Many social enterprises are in a place where they can take advantage of the renewed interest in social enterprise and ethical business practices, and our programmes will continue to evolve with these changes – providing social entrepreneurs with the investment, connections, opportunity, and confidence to scale their impact.

We are humbled to have worked alongside the many social enterprises responding as only

they know best to the needs of their local community. We continue patiently to support those social enterprises building resilience, while providing support for those moving towards, and already in, recovery and growth. Our hope is that these social enterprises, and businesses of all kinds, will unite in our shared mission to build an impact economy.

Next year, April 2021 – March 2022, marks the end of the first action plan of our 10-year strategy and, over the coming

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“We are humbled to have worked alongside the many social enterprises responding as only they know best, to the needs of their local community.”

year, we will be taking an in-depth look at progress towards an Impact Economy. We continue to see signs of impact economy growth through global, regional, and local movements and look forward to reflecting on SIS’s contribution within this.

In the meantime, and as always, if you’d like to talk to us about any SIS activities, then please do get in touch.

With very best wishes from the team at SIS.

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Some of the Social Investment Scotland team

A charity and social enterpriseSocial Investment Scotland Playfair House 3 Broughton Street Lane Edinburgh, EH1 3LYsocialinvestmentscotland.com Registered in Scotland SC223302, Charity SC036875