About the Scottish Investment Fund

SIF is a £30m fund  established by the Scottish Government  to build on the activities of the Futurebuilders Scotland programme, which was launched in 2004 and invested almost £18m between 2004 and 2007 in expanding the role of the social economy in delivering public services.   While SIF shares a number of the aims associated with Futurebuilders Scotland it will target social outcomes achieved in specified priority areas and adopt an investment-based approach fundamentally different to traditional grant-based regimes.

The key features of SIF are as follows:-

• a total of £30m will be subscribed over a three-year period - £4m in 2008/09, £10m in 2009/10, and £16m in 2010/11;
• SIF is targeted at established, 'investment-ready'  third sector organisations which have been trading successfully, generating income other than grants, for at least three years and which aim to achieve a step change in their activities;
• SIF aims to provide a blend of funding solutions including loan finance and non-repayable strategic investments as well as other financial products providing the equivalent of risk capital;
• loan funding (including loans provided by strategic banking partners where appropriate) will be a key element of all SIF investment packages.

The business plan of organisations seeking investment will be assessed for loan funding before any non-repayable element is considered.   This focus on investments involving repayments of capital and interest will allow the fund to fulfil its aims that involve re-investing the proceeds of successful investments in the next generation of investment targets.   As well as providing financial support, the fund will pay for development and business support where appropriate. 

 Note: Organisations unwilling (or unable) to consider loan finance will not be eligible for SIF investment.   

For more details of SIF investment criteria and priorities please click here.