Our loans are designed for people that cannot access all the business funding that they require from commercial sources (i.e. Banks and building societies).

We are not in competition with the banking sector, we aim to complement their provision. To date, DSL has invested £5 million in around 500 local businesses. Any money made from loans goes back into the business in order to enable us to lend to more businesses. We do not distribute profits to shareholders or owners. DSL is a subsidiary of CEiS Ltd (see more at www.ceis.org.uk).

BACKGROUND

Established in Glasgow, Scotland in 1993, DSL is Community Development Finance Institution (CDFI) providing unsecured business start-up and growth loans for small businesses and social enterprises. 

A company limited by guarantee, DSL has enterprise trust status and holds a consumer credit license. The formation of DSL was as a direct response to research into the difficulties faced by people from under-invested communities when attempting to access funding for new or existing businesses.  In response the Glasgow Regeneration Fund (GRF) was established to provide microfinance to entrepreneurs in Glasgow's Regeneration Areas (Castlemilk, Drumchapel, the East End, Greater Easterhouse, Glasgow North, Gorbals, Govan and Greater Pollok). DSL was formed by Glasgow City Council and Scottish Enterprise Glasgow to manage the fund.

GRF began lending in 1993, having raised over £3 million from public and private sector sponsors, including an award from the European Regional Development Fund via Strathclyde European Partnership.  As GRF formed part of Glasgow City Council’s and Scottish Enterprise Glasgow’s respective strategic plans, each contributed significantly in financial terms and both provided Board Directors.

The private sector also made significant financial contributions, this included support from; The Body Shop, The Royal Bank of Scotland and British Petroleum.  Seconded managers were provided by Clydesdale Bank and Bank of Scotland. 

The £3 million fund operated on a rolling basis, allowing the full £3 million to be invested in local businesses, as well as covering DSL's operational costs for 8 years.

GRF was formally wound up in June 2001, having invested over £3 million in 372 “high risk” enterprises, creating 2,126 new jobs and safeguarding over 1,000 existing jobs.

The Glasgow Women’s Microcredit Project was established as a “sub-fund” of GRF and was managed in conjunction with Wellpark Enterprise Centre. DSL provided the loan capital element of the project alongside advisory and fund management support. The project was based on a group lending model, common in many developing countries, but at that time relatively unknown - and unused - in the UK. It targeted women who may otherwise never have the confidence to go into business, and women who have particular difficulty accessing capital for their existing business.

Due to the success of this local pilot Scottish Enterprise developed and launched the National Microcredit Programme which operated successfully throughout the Scottish Enterprise area.

The success of GRF inspired DSL to continue to invest in under-invested communities and two further funds were developed: the Social Enterprise Fund (SEF) for social economy organisations and the Western Scotland Regeneration Fund (WSRF), which superseded GRF as DSL's core activity.  The funds were raised from European Regional Development Funds and matched with public sector contributions from the Department of Trade and Industry and a loan from Unity Trust Bank.

In 2004, DSL merged these funds and rebranded under the name DSL Business Finance. However DSL’s philosophy largely remains the same as the organisation still aims to provide finance to small businesses and social enterprises that cannot access funding from mainstream sources and therefore cannot develop their business. 

In 2004 over £1.2 million was invested in 125 local businesses and social enterprise throughout the West of Scotland. Whereas in 2005 DSL lent £1.3M which levered: £1.3M in private sector support; £0.9M from the public sector and £1.04 from the owners of the businesses. In 2005, DSL issued 126 loans to 124 small businesses and social enterprises.

THE BOARD

DSL's Board of Directors is drawn from highly regarded senior executives from both the public and private sectors. Please click on the links below to find out more about each Director.

• Steve Inch - Chairman
  
• Eric Munro - Director
  
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• Baillie John Flanagan - Director
  
• Marian Gardiner - Director
  
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• Iain Rennie - Director
  
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• Ronnie Saez - Director
  
• Gerry Higgins - Director/Group Chief Executive
  

THE STAFF

DSL has a 4 full time staff members.  Please e-mail us if you want to apply or for further information.

• Eunice Lancaster - General Manager/Company
• Secretary
• Sandra McLean - Fund Manager
  
• Sarah Gibson - Loan Liaison Officer
• Mujeeb Ur-Rehman - Operational Development Manager
  
• John Crone - Administration Assistant