Social Investment Business and Access – The Foundation for Social investment – have announced £4m worth of grant funding has been made available to be used alongside the Resilience and Recovery Loan Fund to support charities and social enterprises based in and delivering the majority of their impact in England.
The £4m is a part of the wider £30m Access has received from dormant bank accounts to create new blended finance solutions for charities and social enterprises in England impacted by the COVID-19 crisis. The new blended grant funding will be delivered by Social Investment Business, with money from Access, working with experienced partners on delivery: Big Issue Invest, CAF Venturesome, Charity Bank, Resonance, Social and Sustainable Capital.
The Resilience and Recovery Loan Fund continues to be a loan programme and applicants must apply for a loan and may be approved for a loan without any grant award alongside it. Grants will only be awarded alongside a loan if it is clear that the COVID-19 interruption to their business model means that they would struggle to meet a viability threshold for a loan without the grant. In this sense, the grant enables use of the loan fund – it is hoped that this will widen the reach and accessibility of the fund.
Assessed on a case by case basis alongside the loan, grants that are awarded will range in size from £40k - £300k and can be 20% to 40% of the loan amount.
Nick Temple, Chief Executive of SIB, said:
“We are delighted to receive this £4m from Access, which will enable the Resilience and Recovery Loan Fund to help more organisations in need in England. Since launching RRLF, we have been transparent that loan finance will not suit all charities and social enterprises, but that we hoped it would for some: introducing this blended finance solution to RRLF widens the accessibility of the Fund to organisations who would otherwise struggle to meet the viability threshold for a loan. If we are truly to Build Back Better, patience and flexibility are absolutely key for a fairer funding structure in the recovery.”
Seb Elsworth, Chief Executive of Access, said:
“Blended finance can help more charities and social enterprises to benefit from social investment, and this applies to emergency lending too. We are pleased to be working with SIB and partners in the Resilience and Recovery Loan Fund, using grant funding in smart ways to expand the reach of the fund and help more organisations to survive and thrive beyond the pandemic.”
How to apply
To find out more about RRLF, how to apply and eligibility criteria for the grants blend, please visit the Fund page.
For further information, please contact:
Marketing and Communications Lead
Social Investment Business
About Access – The Foundation for Social Investment
Access – The Foundation for Social Investment (Access) exists to help make charities and social enterprises in England more financially resilient and self-reliant so that they can sustain or increase their impact.
Access does this in two ways: through the provision of grant in blended finance models to make social investment more suitable to more charities and social enterprises; and through enterprise development programmes, supporting charities and social enterprises who wish to develop earned income models or investigate social investment.
Access’s capital comes from DCMS, dormant bank accounts and the National Lottery Community Fund.
Phone: Seb Elsworth: 07759 045419
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 2004, SIB has deployed and managed over £400m of loans and grants into over 2,000 organisations and enabled almost 1,000 more to get dedicated support through programmes. www.sibgroup.org.uk
About the Resilience and Recovery Loan Fund
The Resilience and Recovery Loan Fund (RRLF) is a new fund for social enterprises and charities that are improving people’s lives across the UK who are experiencing disruption to their normal business model as a result of COVID-19. It has been established to make an existing government scheme (the Coronavirus Business Interruption Loan Scheme (CBILS) more easily accessible to charities and social enterprises.
To date, RRLF has approved loans from 19 charities and social enterprises, with a total value of almost £6.1m. RRLF is being run by Social Investment Business (SIB) with an initial £25m investment and support from Big Society Capital. SIB is the lender, and will work with experienced social investor partners on delivery of the fund: Big Issue Invest, CAF Venturesome, Charity Bank, Resonance, Social Investment Scotland, Social and Sustainable Capital and Wales Council for Voluntary Action. Other delivery partners may be added in future.