Covid-19 recovery loan scheme worth £25m for charity sector launches

A £25m loan fund to help charities recover from the Covid-19 pandemic has launched.

Social Investment Business (SiB) has announced the launch of the Recovery Loan Fund to help charities and social enterprises in the UK recover from the impact of the Covid-19 pandemic.

On offer are loans of one to six years, worth between £100,000 and £1.5m.

However, Black, Asian and minority ethnic (BAME) led organisations and those based in Wales and Scotland will be able to apply for loans upwards of £50,000, SiB said.

SiB hopes the fund will “ultimately” be a least £25m in size.

Applications launched today (18 October) for the fund, which is offering loans under the British Business Bank Recovery Loan Scheme, which supports access to finance for UK organisations.

Capital for the fund has been committed by Fusion21 Foundation, the charity parent of social investor Fusion21 and a founding investor in SiB.

“Charities and social enterprises continue to need patience, flexibility and responsiveness in the post-Covid recovery,” said SiB chief executive Nick Temple.

“This Fund aims to meet those needs, providing the right finance at the right time for those that need it. Our ongoing commitment is to be as responsive and transparent to our customers as possible.”

This new fund replaced SiB’s Resilience and Recovery Loan Fund, which approved £28m in funding to 77 charities and social enterprises, through £24m of loans and more than £3.9m in grants.

Fusion21 chief executive Dave Neilson added: “The voluntary, community and social enterprise sector has worked tirelessly to continue delivering vital community services throughout the pandemic - often with very limited resources.

“Our contributions will make a positive social impact to both eligible organisations and their communities.”