Charities affected by Covid-19 can access more than £25 million of affordable finance through the Resilience and Recovery Loan Fund (RRLF).
The RRLF is part of a wider package of support provided by Big Society Capital and Social Investment Business that is offering loans of between £100,000 and £1.5 million to not-for-profit organisations in financial distress.
Under the terms of the RRLF, charities and social enterprises are not required to put up a personal guarantee and no interest or fees will be charged for the first 12 months.
It is hoped that the cash injection can be used by organisations as working capital to get their organisation back on track as the country emerges from lockdown.
This could include, but is not limited to:
- Covering delays in trade payments
- Rapid scaling up of an existing business model to meet increased demand for services
- Covering revenue shortfall for proven and profitable trading activity
- Filling shortfalls in charitable donations or fundraising for registered charities that have proven historical ability to raise philanthropic money.
To be eligible for the RRLF a charity must have been trading for at least two years, have a minimum turnover of £400,000 and a maximum turnover no greater than £45 million.
Organisations must also demonstrate that it has a “viable” business proposition, among other requirements.
If you would like support making an application to the RRLF, please get in touch our charities team.