Social Investment Business has secured four new investors into their Recovery Loan Fund. The Church of England’s social investment programme, Big Society Capital, MFS Investment Management and Treebeard Trust will join founding investor the Fusion21 Foundation, taking funds raised to date to £21.5m (including follow-on commitments). These investments will enable SIB to continue to make an existing Government guarantee scheme, the Recovery Loan Scheme, more easily accessible to charities and social enterprises who have been impacted by Covid 19 and need funds to help them to recover, adapt and grow – allowing them to continue to serve their communities in need.
Charities and social enterprises can apply to access the funding by clicking here.
The Recovery Loan Fund to support UK charities and social enterprises to survive, recover and grow following the Covid-19 pandemic. The Fund will work under the terms of the Government’s Recovery Loan Scheme and funding purposes will be considered, including refinancing of existing debt onto more patient terms. For eligible charities and social enterprises, funding terms available are:
- Loans of £100,000-£1.5m. (BAME-led organisations and those based in Wales and Scotland will be able to apply for loans upwards of £50,000)
- A loan term of 1-6-years, with no penalty for early repayment
- A capital repayment holiday for up to one year, with regular payments thereafter
- A fixed interest fee of 7.9% per year, with an arrangement fee of 2.5% to 3% - depending on size of the loan
Charities and social enterprises - many of whom are a vital part of our social infrastructure - are experiencing continued disruption to their normal business model in a post-Covid recovery. Demand for funding is now shifting towards pivoting business models, diversifying income streams, and remote service delivery. The Recovery Loan Fund will provide repayable and flexible finance to charities and social enterprises directly affected by the current crisis. It has been established by SIB to make an existing government scheme (the Recovery Loan Scheme) more accessible to charities and social enterprises.
- The Fund is for charities and social enterprises who have been impacted by Covid-19 and need funds to help them to survive, recover and grow.
- Many organisations are also looking to refinance short-term debt - all loan purposes will be considered from applicants, including refinancing.
How to apply
The Recovery Loan Fund is open for applications until 11.59pm on Friday 20th May 2022.
For more information, including full eligibility criteria, product details and FAQs, visit: https://www2.sibgroup.org.uk/RecoveryFund?Referrer=Vonne
More information:
- The Fund is managed by Social Investment Business alongside founding investor the Fusion21 Foundation and fund partners Big Issue Invest, Charity Bank, Resonance, Social Investment Scotland, Key Fund, and Wales Council for Voluntary Action and makes the Government’s Recovery Loan Scheme (RLS) more easily accessible to charities and social enterprises.
- The UK Government via the British Business Bank provides the Lender (SIB) with a Guarantee in case the Borrower is unable to re-pay the loan. The Guarantee is provided to the Lender (SIB) and not the Borrower.
- The provision of the Guarantee does NOT remove any of the Borrowers liability for repaying their loan. In the event of the Borrower defaulting on its loan repayments, the Lender (SIB) is entitled to seek to recover the full amount outstanding from the Borrower.