New charity invites Scots to invest in local services

Scoail communities fund web

Scottish Communities Finance will invest in social enterprises that provide services in local areas

7th December 2017 by Gareth Jones 0 Comments

A new charity is aiming to help Scots invest in their communities.

Scottish Communities Finance Ltd (SCF), a community benefit society based in Edinburgh, aims to mobilise ordinary people across Scotland to use savings to reinvest in their communities.

Launched this week, the organisation aims to support job creation, regeneration and improve local services.

SCF will work with community partners to issue community bonds that can be purchased by individuals and organisations. The money raised will then be used to establish individual community loan funds, tailored to suit the needs of any particular community.

“We believe that encouraging ordinary people to reinvest back into their communities – by pooling their financial resources in a community loan fund and lending this out to community businesses and social enterprises – can help make communities more sustainable,” said Pauline Hinchion, secretary of SCF.

With its first community partner Scotland's Social Enterprise Network, SCF is issuing a prospectus to establish a bespoke social enterprise community loan fund.

This new fund will make micro, unsecured and affordable finance available to social enterprises that provide goods and services to communities.

Social enterprises can be a lifeline to regeneration communities and those in remote rural areas but struggle to obtain the finance they need from mainstream banks and lending institutions.

Hinchion added: “Purchasing community bonds is about making an investment in your local community. Becoming a community investor shows your support for your community and encourages regeneration, local job creation, vibrant local facilities and a diverse economy.”