Boost for hard pressed charities
Applications for the new Resilience and Recovery Loan Fund (RRLF) are now open to charities.
The £25 million emergency fund, which will provide repayable finance to UK charities and social enterprises directly affected by the COVID-19 crisis, is working with finance made available from Big Society Capital.
Lender, the Social Investment Bank is working initially with delivery partners Big Issue Invest, Charity Bank and Social and Sustainable Capital to pay out the funds.
Charities and social enterprises – many of whom are facing urgent cash-flow problems and disruption to their delivery – can apply for emergency loans between £100K-£500K with flexibility in terms, including:
- A minimum of a 1-year term and a maximum of 3-year term
- Interest-free and fee-free for the first 12 months (in line with CBILS)
- 6.5% per annum for years 2 and 3
The flexibility comes because the fund provides access to the government’s existing Coronavirus Business Interruption Loan Scheme (CBILS).
SIB was one of nine new accredited lenders for the CBILS scheme announced by British Business Bank.
Hazel Blears, chair of Social Investment Business, said: “Charities, social enterprises and voluntary organisations have been hit hard by the COVID-19 pandemic, at a time when their role is more critical than ever in supporting our most vulnerable communities. The Resilience and Recovery Loan Fund aims to support these organisations, so that they can continue to deliver crucial services to the growing number of those most in need.”
Nick Temple, chief executive of Social Investment Business, added: “The team at Social Investment Business has worked at speed to get the Resilience and Recovery Loan Fund up and running. The social sector is under significant strain and SIB is very aware that many organisations will need grant or other funding, but we hope that RRLF will help some social organisations to survive and continue their vital work in these challenging times.”
Other funding opportunities for Scottish charities can be found at the Coronavirus Third Sector Information Hub
