Loan
The Recovery Loan Fund provides loans of between £150k and £1.5m to UK charities and social enterprises based in England, Wales and Scotland.
The fund is supported by the Government guarantee scheme – Recovery Loan Scheme.
The Recovery Loan Fund is for UK charities and social enterprises based in England, Wales and Scotland who are improving people’s lives, or the environment they live in.
Not sure if this fund is for you? Want to talk about your eligibility or any questions you have about the application process? We’re happy to help, just get in touch at: loans@sibgroup.org.uk
See the Application Form Guidance (linked below) for a list of eligible/ ineligible income items.
A loan cannot be used to support the following sectors:
Loan
| Product | Loan | |
| Amount | £150k to £1.5m
Organisations based in Wales and Scotland can apply for loans upwards of £50k |
|
| Repayment Term | 1 – 6 years | |
| Interest Rate | 7.9% per annum fixed | |
| Arrangement fee | 2.5% on loans of £500k or greater 3% on loans <£500k |
|
| Repayment |
|
|
| Security |
|
|
| Purpose | Any, including refinancing of existing debt | |
Click ‘Apply Now’ to start your Recovery Loan Fund application.
Want to chat through the process or find out if this fund is right for you? We’re here to help. Get in touch:
loans@sibgroup.org.uk or 020 8156 0020.
We run and set up the fund, with initial investment from SIB and the Fusion21 Foundation – the charity parent and social investor of social enterprise and public sector procurement provider Fusion21. In January 2022, The Archbishop’s Council, Big Society Capital, MFS Investment Management, and Treebeard Trust were announced as further investors in the fund, taking funds raised to date to £21.5m (including follow-on commitments).
SIB works with experienced social investor partners to deliver the fund: Big Issue Invest, Charity Bank, Key Fund, Resonance and Wales Council for Voluntary Action, and Black and Racially Minoritised partners The Ubele Initiative and Create Equity.
We established the fund to make it easier for charities and social enterprises to benefit from the Government’s guarantee scheme – Recovery Loan Scheme.
The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small business as they look to invest and grow.
The Recovery Loan Scheme aims to improver the terms on offer to borrowers. If a lender can offer a commercial loan better terms, they will do so.
Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022, although in some cases it may reduce the amount a business can borrow.
Recovery Loan Scheme-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.
Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
Subsidy: The assistance provided through RLS, like many Government-backed business support activities, could be regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow.
All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.
Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.
To find out more about the requirements, please visit out Subsidy Guidance.
Business Finance Support
The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cash flow and a list of independent advice services.
Legal Notice
The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit http://www.british-business-bank.co.uk/recovery-loan-scheme *
*Organisations based in Northern Ireland will be referred to Community Finance Ireland.
