New Community Share Loan
Social Investment Scotland (SIS), in collaboration with Community Shares Scotland, have launched a new loan aimed at organisations raising funds through a community share offer. This will enable organisations to progress their projects in the event that the share offer does not raise sufficient funds.
Key details of the Community Share Loan include:
- A loan to support you achieve your share offer target. Subject to credit approval, the commitment level will be agreed on a case by case basis up to a maximum of £1m to a single project. Fixed annual interest of between 7% and 9%.
- A maximum term of 10 years.
- The loan can be interest only for up to 18 months. This interest can either be paid or deferred, followed by equal payments of capital and interest over the remaining loan term.
- The loan can be repaid from income generation or through subsequent share issues. There are no fees or penalties for early repayment.
- SIS loan can be involved alongside commercial loans.
- There must be a minimum value of shares committed before SIS loan can be drawn and this will be agreed on a case by case basis depending on the target. This is not a bridging facility
For more information see SIS Community Share Loan Guide.