Appraisal Process

No application form is required. 

The appraisal process comprises a number of distinct stages:-

Stage 1 - Online Appraisal

The Online Appraisal model enables organisations seeking investment to  establish firstly, whether or not they meet SIF eligibility criteria,  and secondly, the extent to which their  activities and social outcomes fit with the investment priorities of the fund.  The model covers 3 areas:-

Stage 2 - Full Investment Assessment

Proposals accepted for Stage 2 will be assessed by reference to the business plan of the organisation seeking investment.   SIF Investment Managers will undertake a detailed review of both the financial and social aspects of the proposal which in every case will involve meetings with potential investment candidates at their business premises.   At this stage, the SIF Investment Manager will complete an organisational assessment, address any issues arising from the assessment, and specify the scope of appropriate 'due diligence' to verify the robustness of the business plan and its underlying assumptions.

Information required to support proposals accepted for Stage 2 will include as a minimum:

• current business plan including financial projections for at least the next three years incorporating profit and loss accounts, balance sheets and cash-flow projection;
• last three years' audited accounts;
• management accounts detailing up to date income/expenditure for the current financial year;
• Memorandum and Articles of Association or other Constitutional Documents

The outcome of Stage 2 should be the preparation by the SIF Investment Manager of a Schedule of Outline Terms and Conditions setting out the proposed structure of the investment package.

Stage 3 - Approval

Once the Schedule of Outline Terms has been agreed, the Investment Manager will prepare a detailed Report and Recommendation for submission to the SIF Investment Panel.   The Investment Panel includes representatives from the Scottish Government, Social Investment Scotland, and a number of individuals with strong credentials in banking, financial services, and the social economy.  The  decision of the Investment Panel will be notified to the applicant without delay and confirmed formally in writing.

Stage 4 - Legal Completion

Where an Investment Application has been approved a formal Letter of Offer detailing the agreed terms and conditions of the investment will be produced  for signature by the applicant(s). The SIF Investment Manager will monitor the completion of all conditions, including the completion of any security, set  out in the formal Letter of Offer.  Where security is involved the Investment Manager will instruct the solicitors acting on behalf of the Scottish Investment Fund to progress matters with the applicant's solicitors.

Note: Funds will only be released on completion of all conditions detailed in the formal Letter of Offer. 

If an organisation is accepted for investment the Appraisal Process should take no more than three months.

 Stage 5 - Post Investment Monitoring

The SIF Investment Manager will maintain regular contact with the Investee following drawdown of the investment to monitor progress towards the attainment of the agreed outcomes.