Loans can be a necessity for any group or business undertaking a new project. Most banks will consider the risk of lending to a community group or a social enterprise in the same way as for any other business.
For groups without much history of trading it may be harder to obtain finance in this way. The likelihood, and cost, of loan or overdraft finance may also vary based on the project being undertaken. Organisations and businesses may, in the first instance, wish to approach their existing bank.
The links below include specific investment funds outwith the normal banking system and some banks which have a particular focus on provding services to the community or third sector. Further information on loan financing can be found on the Village Halls website.
The Scottish Investment Fund provides a mix of both strategic investment and loan funding to organisations that are considered to be "Investment Ready". Total packages of £100,000 and more.
Social Investment Scotland provide loan finance for social businesses that may not be able to attract mainstream finance. A range of loans are offered in partnership with the Scottish Government and mainstream banks. Loans of between £10, 000 and £1m are possible.
The Lankelly Chase Foundation funds are currently closed. New programmes and a new website are expected in June 2012.
Venturesome is a Charities Aid Foundation (CAF) initiative providing capital investment in instances where it can be difficult for an organisation with a charitable purpose to obtain a bank loan. Investments of between £20,000 and £350,000 can be made. Various conditions apply and can be seen on the website.
Charity Bank is a charity and a social enterprise in its own right and offer a range of financial products including loans.
Triodos Bank provide a range of banking services for the charitable and social enterprise sectors.
The Cooperative Bank provide specific Community Banking services and well as mainstream business banking facilities.
Unity Bank offers a banking services and financial services including a range of loans.
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