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Resilience and Recovery Loan Fund

Fund manager - Social Investment Business

We worked with a range of partners to create a new £100 million funding programme.

  • £25m Size of Resilience and Recovery Loan Fund – Data from Social Investment Business
  • 40 Number of social enterprises and charities with approved loans from RRLF by November 2020
  • £15m Amount approved by RRLF by November 2020

Challenge​

The impact of the coronavirus pandemic on social enterprises and charities, and the products and services they provide, has been unprecedented. To tackle a challenge of this scale takes a combined effort, and a broad package of grants and business support. Repayable finance could help some social enterprises and charities facing cashflow issues and trading disruption to deliver crucial services, while for others it could help bridge the shortfall in revenue caused by delayed payments. However, a number of organisations can’t access emergency repayable finance from the main Government-backed Coronavirus Business Interruption Loan Scheme. ​

​Approach​

Big Society Capital coordinated with a range of social investors, and the Department for Digital, Culture, Media and Sport (DCMS), to provide new funding through a £100 million programme with the accelerated release of £45 million from previously committed dormant accounts. Together with partners across the sector, we established the £25 million Resilience and Recovery Loan Fund, managed by the Social Investment Business. This loan fund made it possible for a range of social investors (Big Issue Invest, CAF Venturesome, Charity Bank, Resonance, Social Investment Scotland, Social and Sustainable Capital and Wales Council for Voluntary Action) to provide emergency loans of £100,000 to £1.5 million to social enterprises and charities disrupted by COVID-19. We were also able to make changes to the £30 million Community Investment Enterprise Facility (CIEF), to allow loans under the Coronavirus Business Interruption Loan Scheme. ​

​Impact​

As of November 2020, RRLF has approved funding to 40 social enterprises and charities, with a total value of £15 million. Most applications have been made by organisations based in London (40.9%), followed by the South East (16.2%), North West (9.7%), South West (7.1%), and the East Midlands (5.8%). Organisations are primarily seeking loans in the outcome areas of training and education, and mental health and wellbeing. The primary beneficiaries for loans are people living in poverty or are financially excluded, and vulnerable young people. The fund has now extended to take new applications until Sunday 31 January 2021.