A tie-up between supermarket giant Asda and Social Investment Scotland (SIS) has now lent more than £1 million to community schemes across Scotland.
The Asda Community Capital fund uses proceeds from the Scottish Government’s carrier bag charge. The £1m milestone was passed with the approval of a £40,000 loan to childcare provider Klas Care, based in the Renfrewshire towns of Linwood and Johnstone.
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Set up in 2010 by local mums Kirsty MacKenzie and Lesley Compston in response to a severe lack of local affordable childcare, the venture will use the money to convert and renovate premises which it has recently acquired.
Klas Care is the 30th organisation to be awarded funding through the fund. Other recipients include Edinburgh-based community baker Breadshare, Cumnock Juniors, Brewgooder and Heroes Vodka.
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For recipients of the funding, interest is waived during the first year of investment and, from the second year, all interest raised on the community capital loans is reinvested to support more good causes.
Alastair Davis, chief executive of Social Investment Scotland, said: “The fund has been instrumental in supporting local groups across Scotland who were struggling to gain access to capital through traditional routes.
“By offering loans free from interest payments for the first year, these organisations have been able to focus their energy on increasing local community impacts and making a real difference to people’s lives.”