Social What? 2 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 rd 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 organisation s

Why Social Investment? 4 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 5 Aberdeen Gymnastics Trust £35k all purpose loan to allow for the purchase of a range of high quality equipment Foxlake Adventures Scotland’s only cable wakeboard park, £40k all purpose loan to assist with working capital. Just trading Scotland Short 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 Studies Provides Cognitive Behavioural Therapy sessions. Loan of £100k over 10 years; Triodos provided £350k over 25 years

Our work with Resilient Scotland 6 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 8 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 9 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 10 Can I have another lender? What happens once the investment is in place? What is a Financial Covenant? What if it goes wrong?