Social Investment Scotland launches £3.5m business fund
Social Investment Scotland has opened applications for a £3.5 million loan fund for smaller businesses in the West of Scotland.
The pilot fund offers loans of between £25,001 and £125,000 to eligible businesses in specific postcodes across Glasgow, Argyll and Bute, West Dunbartonshire, North Ayrshire, South Ayrshire, East Ayrshire and Inverclyde.
The fund targets SMEs and smaller firms that may struggle to borrow through mainstream lenders. It also marks a shift for the Edinburgh-based lender, which has more than 25 years of experience lending to charities and social enterprises.
For the first time, Social Investment Scotland can use the programme to lend to limited companies, sole traders and partnerships.
Pilot fund runs until December 2026
The launch is a pilot phase running until December 2026. Eligibility is tied to specific postcodes within the seven council areas, so a business address in one of those areas does not guarantee access.
Businesses should check whether their postcode qualifies before preparing an application.
Social Investment Scotland plans to widen access to the fund across the rest of Scotland once the pilot has concluded and its approach has been tested. It has not published a date for the wider rollout.
Who can apply
Loans are available to limited companies, sole traders, partnerships and limited liability partnerships. Terms run from one to six years.
Most sectors can apply, although some are excluded. Social Investment Scotland says pricing is in line with comparable Community Development Finance Institution programmes.
The launch announcement does not list interest rates, so applicants will need to discuss terms directly with a partner, broker or adviser.
British Business Bank backing
The fund follows Social Investment Scotland’s accreditation under the British Business Bank’s Community ENABLE Funding programme.
The British Business Bank announced the £3.5 million allocation on 30 July 2026, when Social Investment Scotland became the eighth Community Development Finance Institution lender accredited under the programme and the first with a dedicated focus on Scotland.
Community ENABLE Funding provides wholesale finance to social impact lenders, including Community Development Finance Institutions, which then lend to smaller businesses in their local areas.
The programme aims to enable up to £150 million of lending across the UK over its first two years. In the first phase, the Department for Business and Trade is providing all of the funding through the British Business Bank.
The stated aim is to widen access to finance for businesses that may find mainstream lending difficult. Community lenders typically work closely with local businesses and communities, which can help them reach firms that banks may not.
Alastair Davis, chief executive of Social Investment Scotland, said access to finance remains “one of the biggest barriers facing small businesses” in parts of Scotland.
He said the challenge is particularly visible in the West of Scotland communities chosen for the pilot, and that starting with a focused phase would allow Social Investment Scotland to build partnerships and test the model before opening it nationally.
How to apply
Businesses in the pilot areas can apply through Social Investment Scotland’s network of Community ENABLE Funding partners and brokers. The current network includes Altruistic Commercial Finance and TSF Finance.
Applications can also be made through the Business Gateway service for the relevant pilot area. Local Business Gateway advisers may be a useful first contact for businesses unsure whether their postcode or sector qualifies.
Businesses elsewhere in Scotland cannot apply during the pilot. Social Investment Scotland expects to extend access across the country once the West of Scotland phase has been tested.
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