Social Investment Business secures further investment for the Recovery Loan Fund with £17m raised so far

Social Investment Business (SIB) has secured two new investors for the Recovery Loan Fund (RLF) and an increase in commitment from existing investors. Offering repayable finance, the Recovery Loan Fund works under the terms of the British Business Bank Recovery Loan Scheme (RLS) – which supports access to finance for UK businesses as they recover and grow.

Second close investors, helping raise £7 million into the fund, are Ceniarth and The Clothworkers’ Foundation. These new investors join Big Society Capital and the Church of England who have further increased their commitment to the fund.

Further commitments from existing and the additional investors bring the total raised to date to over £17 million. Since launch, the Recovery Loan Fund has approved almost £10 million to 39 organisations; £4.6 million to 16 organisations in the early phase of the fund, with a further £5.3 million to 23 organisations since re-launching in October 2022.

The Recovery Loan Fund is for organisations that are improving people’s lives, or the environment they live in. The fund is open to charities and social enterprises based in England, Wales and Scotland and offers loans of between £150,000 and £1.5 million. The fund has supported a range of organisations working across training and education, employment, physical and mental health and wellbeing and housing and community facilities.

The Recovery Loan Fund first launched in October 2021, with investment from Social Investment Business and the Fusion21 Foundation. In January 2022, The Archbishop’s Council, Big Society Capital, MFS Investment Management and Treebeard Trust were announced as further investors in the fund.

The fund aims to be accessible and affordable as our loans are offered at a fixed rate, organisations can borrow with certainty for loans up to six years, knowing that the interest cost will not increase, even though rates have risen sharply in the wider economy.

Alongside the Recovery Loan Fund eligible organisations can apply for a grant that sits alongside the fund, provided by the Access Foundation. Flexible Finance supports Black and Racially Minoritised led organisations to help them to grow or take on assets and become more resilient. The Cost of Living Fund supports organisations delivering products and services to people impacted by the cost-of-living crisis in the 30% most deprived areas of England.

“We are delighted to welcome Ceniarth and The Clothworkers’ Foundation to the existing investors in the Recovery Loan Fund. In combination, their support will allow Social Investment Business to expand our work with charities and social enterprises across the country, strengthening their financial resilience and amplifying their impact.”

Nick Temple – CEO at Social Investment Business

“The Clothworkers’ Foundation has been gradually growing its social investment portfolio over the past five years, and we are delighted to add to this with our investment in the Recovery Loan Fund.

Together with the other investors, we look forward to building on the work already being undertaken and working with Social Investment Business as well as the experienced delivery partners. Ensuring that the benefit of the government’s Recovery Loan Scheme guarantee is more easily accessible to charities through affordable finance will allow these organisations to continue to serve their communities and achieve their missions.”

Hamesh Patel –  Director of Finance, Property and Investments at The Clothworkers’ Foundation

“We are very pleased to be joined by new partners in supporting the continued growth of the Recovery Loan Fund which has established a strong track record of delivery and demonstrates crucial impact for charities and social enterprises as they navigate the path to recovery and growth. It is brilliant to see the continued support of the British Business Bank through the Recovery Loan Scheme guarantee, which continues to be vital in making a difference to these organisations unlocking financing they need.”

Victoria Crisp – Investment Manager at Big Society Capital

“We are delighted to be supporting the UK charity sector through investing in the Recovery Loan Fund. The underlying finance will enable charities and social enterprises to scale up activities to meet growing demand for their services in the UK. Social Investment Business are a highly aligned partner who, together with their delivery partners, are well placed through their years of experience to deliver on this strategy.”

Diane Isenberg – Founder of Ceniarth

How to apply

The Recovery Loan Fund is open for applications

For more information, including full eligibility criteria, product details and FAQs, visit: https://www.sibgroup.org.uk/funds/recovery-loan-fund/

About Social Investment Business

Social Investment Business provides finance to create fairer communities and improve people’s lives. They do this by providing the money and support they need directly, partnering to support them effectively and, using their knowledge to inform their own work and influence others.

Since 2002, SIB has disbursed and managed more than £0.5bn of loans and grants, directly supporting more than 4000 charities and social enterprises.