Big Society Capital
The Resilience and Recovery Loan Fund is being managed by Social Investment Business (SIB) with an initial £25 million investment and support from Big Society Capital. SIB is the lender and will work initially with three experienced social investor partners on delivery of the fund: Big Issue Invest, Charity Bank, and Social and Sustainable Capital. Other delivery partners may be added in future.
The fund has been established to make an existing government scheme - the Coronavirus Business Interruption Loan Scheme (CBILS) - more easily accessible to charities and social enterprises. CBILS is only available through lenders accredited by the British Business Bank and is designed to support small businesses with a turnover of under £45 million.
Objectives of Fund
Emergency loan funding is available to support registered charities and social enterprises in the UK that are experiencing disruptions or delays to their income or activities as a result of the coronavirus/COVID-19 pandemic.
The funders anticipate the following will be available:
Loans starting at between £100,000 and £500,000.
Interest rate being towards the lower end of what is being charged by mainstream banks and other CBILS providers.
Loans will have no fees or interest for the first 12 months.
Who Can Apply
Applications are accepted from social-sector organisations that exist wholly or mainly to provide benefits for society or the environment and that meet the governance principles set out by Big Society Capital.
Eligible organisations include:
Organisations must also meet the following criteria:
Have a turnover of less than £45 million.
Have minimum 50% of income from trading.
Self-certify they have been adversely affected by coronavirus/COVID-19.
Demonstrate they have a viable business, if it weren't for the pandemic.
The fund is not intended for organisations that are substantially pivoting, adapting or redesigning their business model.
It is also not available to use for refinancing existing investments.
Loans are available to help organisations with working capital until normal business can resume.
Examples of how the loan funding could be used include:
Providing a bridge until receiving government payments (eg contracts, furlough etc).
To cover delay in trade payments (trade debtors).
To meet increased demand/scale an existing model more rapidly.
How To Apply
The fund is expected to open to applications in mid-April 2020 with the first loans completed by the start of May.
Applications should be made through the central application point on the SIB website.
SIB is aiming for the process to take 2-4 weeks from start to finish.
Useful documents & links
Addresses and contacts
For further information on how to obtain this grant locally, please contact the following:
Enterprise and Development Team
Social Investment Business
CAN Mezzanine Borough
7-14 Great Dover Street
Tel: 020 3096 7900
Email: [email protected]