Social Investment Scotland Community Finance

Deal Summary

In April 2025, Ceniarth provided a low-cost 7-year line of credit of up to £1,500,000 ($1,991,100) to SIS Community Finance (SIS CF), the main subsidiary of Social Investment Scotland, the largest Scottish CDFI (Community Development Financial Institution). SIS CF provides term and bridge loans to charities and social enterprises, and supports organisations with knowledge, training and access to experts to ensure a thriving social enterprise space in Scotland. Research commissioned by Social Investment Business has shown that social investments can have a significant impact in lowering deprivation and boosting economic output and productivity in communities, which is ultimately the objective of this investment.

Beneficiary Impact

SIS CF invests exclusively in social organisations and charities, i.e. organisations where impact is deeply embedded. As of March 2024, SIS CF was supporting 196 full-time equivalent jobs and services to 340,175 people through 42 social enterprises in their portfolio. These are mainly spread across “arts, heritage, sports and faith” (56%), “employment & training” (20%) and “physical and mental health” (16%).

Providing smaller loans (between £25,001 and £375,000) is highly distinctive compared to banks or other alternative lenders, with 28% of SIS’ borrowers receiving loans under £50,000 and 50% of projects only moving forward due to SIS’ involvement (another 25% might have proceeded without SIS funding, but it is uncertain).

Intermediary Impact

In addition to its lending business, SIS supports charities and social enterprises through its Market Building work, which aims to equip organisations (both borrowers and non-borrowers) with tools, knowledge and networks to thrive. This includes initiatives around leadership and growth, investment readiness and business support and the SIS Associates programme (which consists of ~30 experts on retainer to provide ad-hoc support to organisations as and when needed).

Capital Additionality

This investment uses our catalytic lever of patient, modest returning capital. Our ability to provide flexible, low-cost capital over a seven-year tenor will enable SIS to grow its loan portfolio and continue to deliver affordable lending products to their customers despite the heightened base rate environment. The revolving structure enables SIS to minimise interest payments versus a conventional term loan and only draw on the facility as its portfolio scales.