Social Investment Scotland has secured £16m in investment from Big Society Capital and the Scottish government to create a social investment fund for the country.

Big Society Capital has committed £8m in principle, and this investment has been matched by the Scottish government to create the Social Growth Fund for Scotland which will give loans to charities and social enterprises.

Big Society Capital’s investment will be the first of its kind in Scotland and will increase Social Investment Scotland’s fund under management by a third.

It is the second regional-targeted fund from Big Society Capital. Last year it invested in a fund targeted at the North East of England.

Alastair Davis, chief executive of Social Investment Scotland, said: “SIS aims to grow its funds under management significantly over the next five years and this new Social Growth Fund represents a substantial step in this direction.”

Speaking to civilsociety.co.uk Nick O’Donohoe, chief executive of Big Society Capital, said one of its key objectives has been to develop more regional funds.

He added that there was a big increase in social investment available throughout the UK since Big Society Capital's launch. “Today there is £150m in social investment available compared to around £40m last year.”