Charities and social enterprises are being invited to apply for up to £1.5 million in funding through a new coronavirus recovery loan scheme.
The Recovery Loan Fund, launched by the Social Investment Business (SIB) and the Fusion21 Foundation, aims to support the sector in the wake of the pandemic.
According to the report, the initiative will offer repayable and flexible finance under the same terms as the British Business Bank’s Recovery Loan Scheme (RLS) – currently only available to UK businesses.
The cash can be used for a variety of purposes, such as adapting delivery models, diversifying income streams, managing cash flow, or investing in new technology.
Eligible charities and social enterprises can apply for loans worth between £100,000 and £1.5 million, with repayment terms of one to six years.
A capital repayment holiday will also be made available for up to one year. The interest rate is set at 7.9 per cent per year, with an arrangement fee of 2.5 to 3 per cent, depending on the size of the loan.
Commenting on the scheme, Nick Temple, Chief Executive of SIB, said: “Charities and social enterprises continue to need patience, flexibility and responsiveness in the post-Covid recovery.
“This Fund aims to meet those needs, providing the right finance at the right time for those that need it. Our ongoing commitment is to be as responsive and transparent to our customers as possible.”
Dave Neilson, Chief Executive of Fusion21, added: “As champions of social change, we’re proud the Fusion21 Foundation’s investment will be supporting charities and social enterprises across the country who have been hardest hit by COVID-19 – this is an area we have already pledged significant support to as a Foundation.”
The Fund closes to submissions at midnight on Sunday 21st November 2021.
For help and advice with financing and loans, please get in touch with our charity team.