Social Investment Business (SIB) has today announced the launch of the Resilience and Recovery Loan Fund (RRLF) - a new £25 million emergency fund, which will provide repayable finance to charities and social enterprises directly affected by the COVID-19 crisis. The initial £25 million has been provided by Big Society Capital.
In the coming few weeks, RRLF will offer charities and social enterprises – many of whom are facing urgent cash-flow problems and disruption to their delivery - emergency loans with flexibility in terms, including:
- 12 months interest-free and no arrangement fee to be paid
- no personal guarantees required
This flexibility comes because the fund provides access to the Government’s existing Coronavirus Business Interruption Loan Scheme (CBILS). SIB will issue the loans, working initially with delivery partners Big Issue Invest, Charity Bank and Social and Sustainable Capital.
Over the coming months, Big Society Capital aims to reprioritise and repurpose up to a further £50 million to address the needs of charities and social enterprises and - either through the Recovery and Resilience Loan Fund or alternative vehicles.
SIB recognises this fund will not suit the needs of all social sector organisations, and has also acted to:
- provide repayment freezes and flexibility directly to its existing customers
- work with partners Access and Power to Change on their emergency responses
- work as part of the Youth Endowment Fund on a responsive grant round, as well as supporting existing grantees
- undertake two new COVID-19 data projects to swiftly understand how support for organisations and communities can be most effective
- convene social investors to share knowledge and work collectively
- commit with other funders on how we will act at this time to support our customers
Hazel Blears, Chair of Social Investment Business, said:
“We are all facing challenging and uncertain times. Charities, social enterprises and voluntary organisations are providing essential support to our most vulnerable communities. The Resilience and Recovery Loan Fund can help them weather the financial storm and continue their vital work.”
Nick Temple, Chief Executive, said:
“The team at Social Investment Business has worked at great speed and with great collaboration with colleagues at Big Society Capital and with our social investment partners. We will endeavour to manage the Fund in the same spirit of clarity, speed and transparency. We hope that the Resilience and Recovery Loan Fund can be part of the answer to what organisations need to survive these difficult times; and to help those same organisations thrive again afterwards, when their work will be more crucial than ever.”
Jeremy Rogers, Chief Investment Officer at Big Society Capital, said:
“Charities and social enterprises are facing huge challenges as a result of the pandemic. Many are racing to adapt their service delivery and facing an uncertain future. While many will require emergency grants, others have told us they need loans and investment to continue to deliver crucial services to those most in need and so we hope these significant measures will help them at this critical time.”
Social Investment Business are working to get RRLF live as quickly as possible, with the current expectation being to open in mid-April and with the first loans to be completed at the start of May.
ENDS
For further information, contact:
Miranda Love
Marketing and Communications Lead
Miranda.love@sibgroup.org.uk
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