SCF Ltd was established in 2017 by the Scottish Community Re: Investment Trust (SCRT) which is a registered SCIO (Scottish Charitable Incorporated Organisation). Research carried out by SCRT in 2014 found that most small social and community enterprises struggle to find investment that is appropriate to their needs, in particular micro, unsecured and risk capital at an affordable cost. These research findings have subsequently been consistently supported by other bodies undertaking similar social investment research in the intervening period.
The importance of lending at this scale cannot be understated. It not only addresses financial necessity, but also the need for a culture shift that normalises social finance as a vehicle for organisational development. It also increases the confidence levels about managing repayable finance which over time will increase the pipeline for larger social investments.
The SCRT concept of ‘Community Reinvestment’ encourages communities to pool their financial resources for the mutual benefit of that community. It is about people acting mutually and supporting each other by allowing those people with money to lend to enterprises requiring loans.
SCF Ltd is the vehicle by which Community Reinvestment can be achieved thereby addressing the financial needs of communities across Scotland where the inability of community and social businesses to access capital is impacting upon the resilience of those communities.