Making Enterprise Happen
Making Enterprise Happen offers investment packages of between £61,000 and £500,000 to social enterprises, community organisations and charities to develop and expand their enterprising activities. Making Enterprise Happen investments are always part grant and part loan. The split of grant and loan will be negotiated during the assessment process, taking into account the potential social impacts, ability to repay and current State Aid regulations (if applicable). Loans are repayable over up to ten years and are charged at a fixed interest rate of base rate (currently 0.75%) plus 6%.
Resilient Scotland aims to help you to make enterprise happen. We have invested in organisations providing key services to local people, purchasing community assets, and shops and cafes bringing vibrancy back to local high streets. No two Making Enterprise Happen investments will be the same. Locally based social enterprises, community organisations and charities are best placed to bring social and economic improvements to the lives of ordinary people, especially in disadvantaged areas.
Read about the successful Making Enterprise Happen investments.
Why should I choose Making Enterprise Happen?
- Large investments; part grant part loan
- Flexible repayment terms; the loan is repayable over up to 10 years
- Simple, friendly application process
- Ongoing support and advice provided throughout the term of the loan.
How do I apply
If you can answer yes to all the questions on the eligibility checklist then call us on 0131 524 0300 to discuss your proposal.
If we see a fit with our outcomes, you will be invited to complete an Application Form and send us your business plan and your governing document.
We will carry out an initial review of your proposal and business plan to ascertain if it meets the criteria for Resilient investment and demonstrates that it will meet our charitable objects. If we decide to progress your application you will be asked to provide the following:
- Two most recent years audited accounts (for established organisations)
- Management accounts for last three months
- Copies of last three months bank statements
- Financial projections for first three years of investment (to include assumed RSL loan repayments)
- Evidence your organisation is unable to secure commercial lending for a similar amount that you are requesting from Resilient (letter or email)
- Third-party valuation of assets to be used as security, or
quotes for equipment/vehicles to be purchased
- Details of your solicitor
- Letter from accountant confirming that :
- all HMRC obligations are up to date and not subject to a payment plan
- all pension obligations are up to date
- no off-balance sheet liabilities exist
- Evidence of current public liability and employers insurance
Making Enterprise Happen is a rolling programme; there are decision-making panels approximately every two months. Your application will be fully assessed and, if it is recommended for investment, it will be considered at the next available decision making panel.
The Resilient Scotland team try to process all applications as quickly as possible. However, the time taken does depend on the quality of information received from applicants and the level of applications received for each round. We will keep in touch with you during the assessment process and let you know when your application is being presented to a panel.
Frequently Asked Questions
Yes, all of our investments will consist of at least 50% repayable finance.
An investment can be used for almost anything including capital expenditure, revenue funding, marketing, business development or working capital.
Resilient Scotland aims to fill the gap that exists in funding for organisations seeking to move into debt finance but unable to secure lending from a bank. If you have questions about what this means, or what constitutes a refusal, please contact us to discuss.
All potential investments will be reviewed to ensure compliance with State Aid regulations. Further guidance will be provided to organisations whose proposals progress to the next stage, but we do recommend that applicants seek independent advice. Applicants are required to inform us if they have already received investment that is considered to be State Aid (this could be in the form of grants or subsidised loans).
We will seek to take a security for the loan, which may involve securing property or equipment that you already own or are buying with the investment.
Taking a security over the loan acts as protection for Resilient Scotland should you fail to meet your loan repayments.
We will discuss our requirement for security with you during the assessment process.
We will consider all investment proposals that meet our criteria and outcomes. Applications from Partnerships or consortiums would be considered on their merits.
Resilient is not currently accepting applications from CIC’s limited by shares, because of the possibility that they may generate financial benefit for individuals, such as shareholders and investors, and this is not compatible with the charitable aims of Resilient or the JESSICA (Scotland) Trust. We are constantly reviewing our eligibility criteria and will update the website and FAQ’s should this situation change.
You may repay the loan early; there are no fees for doing so, however, if you seek to repay the whole of the outstanding loan amount within the first three years of the term of the investment then you must also repay a proportion of the grant ( this will be detailed in your loan agreement).
You may make larger payments than the agreed monthly payments, but these must be of £1000 or multiples thereof.
You may be required to submit financial information and other information on an ongoing basis as part of our monitoring process; this requirement will be different for each applicant. We usually require that you submit financial information quarterly and budgets and accounts annually.
You are required to inform us of any changes in governance during the repayment term, and we ask that you keep us informed of any significant changes to your business plans or key personnel.
There are no arrangement fees or legal fees in the normal course of making the loan and grant. There is a cost to drawing up and registering the security for the loan and any ranking agreements that may be required; this cost will be deducted from the grant. You may wish to take your own legal advice before signing the security documents, and this may incur a charge.
In some cases, where particular conditions are imposed, the applicant may have to seek independent legal or other advice and this may incur a cost.
Yes. Some investees have taken Start & Grow investment and have successfully returned to us for further investment. All applications are considered on the same basis, so if the debt can be serviced and the outcomes are sufficient, it is possible.
Yes, but will ask to see the Terms & Conditions that apply to other loans, so that we are aware of any restrictions or conditions that other existing lenders may have imposed, in case they affect the terms of our investment. We also ask that you inform us if you intend to take on any new debt funding during the term of the Making Enterprise Happen loan.
If there are unsecured loans in the company from Directors or other individuals, we may ask for a Letter of Postponement to give us comfort that the repayment of the Making Enterprise Happen loan will be given priority. This prevents organisations from using the Making Enterprise Happen investment to repay other existing debts.
The Resilient Scotland team will keep in touch with you throughout the life of the loan. There will be monitoring visits (at least annually), and we will ask you to provide regular up-to-date financial information.
Should you anticipate any problems with meeting your loan repayments, you should contact the Resilient team as soon as possible. We will discuss your particular situation and be flexible in our approach to helping you overcome any financial or cash flow problems if possible. We will do this by using our own expertise, by signposting you to others, or by restructuring the debt if possible.
Once any conditions of the investment are fulfilled, we will pay the full amount of the grant and loan to you by bank transfer.
- Businesses that are insolvent or at the immediate risk of insolvency
- Proposals that are merely to replace existing debt finance
- Subsidiaries of public bodies
- Proposals capable of being fully funded on a commercial basis
- Organisations whose beneficiaries are outwith the 13 eligible local authority areas
- Proposals that promote religious practices or beliefs.