A COMMUNITY fund launched by Social Investment Scotland has invested £400,000 in seven social enterprises.

Broxburn United Sports Club, the Scottish Traditional Boat Festival and Edinburgh Sculpture Workshop are among those receiving the affordable loans from SIS Community Capital, which raised £400,000 from 27 private investors. The fund was the first to be launched under a new social investment tax relief scheme introduced the by the UK government last year to provide capital for social enterprises. Investors receive 30 per cent income tax relief on their investment.

“We’ve seen a huge amount of interest from investors, who have been keen to become part of a new and innovative way of helping to support and grow Scotland’s thriving social enterprise sector,” said Social Investment Scotland chief executive Alastair Davis. “Using the funding from SIS Community Capital, these seven social enterprises will now have the time to develop their businesses and focus on increasing their social impacts, before loan repayments begin.”

The fund provides investees with affordable unsecured finance over a six year term, offering an interest-only rate of 6 per cent for the first three years.

The other businesses receiving funding are football charity Street League; Paisley-based fair trade organisation Just Trading Scotland; the MacDougall of Dunollie Preservation Trust, which owns Dunollie Castle in Oban and Dundee Gymnastics Club.

Social Investment Scotland was set up in 2011 to provide funding for social enterprises and community groups. Since then it has invested more than £50m in at least 210 organisations across Scotland.