Scottish Investment Fund Phase Two: Investment Criteria
Applications must be from organisations who are delivering, or want to deliver, social enterprise activity that is pioneering and innovative.
These activities should generate social impacts that are distinct and measurable and in line with the National Outcomes of the Scottish Government.
Applicants should have the capacity to produce a robust business plan that demonstrates the above, as well as historic financial information where appropriate and relevant.
The financial performance of the organisation should clearly demonstrate:
- by the end of year five of the plan, the generation of sufficient trading income to meet at least 50% of the operational costs of the organisation,
- by the end of year two of the plan an increase in self generated income of 50%.
The business plan should realistically illustrate how this step change in capacity and sustainability will be achieved.
Organisations must be based in Scotland and carry out the majority of their activity in Scotland.
The application must be clear on what the investment will be used for; however the investment can be used for almost anything including capital expenditure, revenue funding, marketing, business development or working capital.
Although the investment fund may award all or part of the investment by way of non-repayable strategic investment, there should be no expectation on the proportion of the investment that will be made in this way.
Applicants should be able to demonstrate that they have explored other avenues (such as bank or grant finance) in an attempt to secure funding for the proposal in their business plan.
The Scottish Investment Fund will NOT invest in
Organisations with little or no track record of generating income other than grants;
Organisations that are insolvent or at risk of insolvency;
Proposals that seek merely to replace existing debt finance;
Subsidiaries of public bodies such as local authorities;
The core functions of support organisations, support bodies and intermediaries - Third Sector trading companies which are owned or controlled by these organisations may be eligible;
Housing construction and management operations of registered social landlords (RSL);
Proposals that relate to the on-going delivery costs of services or projects;
Proposals capable of being fully funded on a commercial basis; or
Organisations whose beneficiaries live outwith Scotland.
Organisations receiving support from either the Enterprise Growth Fund or Social Entrepreneurs Fund during the same period for which funding is being applied for.
