Recovery Loan Fund raises over £21 million to support UK charities and social enterprises


The Recovery Loan Fund has secured four new investors. Managed by Social Investment Business (SIB), and supported by Big Society Capital, the fund has now raised £21.5 million to date from Big Society Capital, the Church of England’s social investment programme, MFS Investment Management, Treebeard Trust and founding investor, the Fusion21 Foundation. Weil, Gotshal & Manges LLP acted as legal counsel on the investment round, and GLAS are acting as the facility and security agent. Linklaters LLP acted as legal counsel to lenders The Archbishops’ Council, the Fusion21 Foundation and Big Society Capital.

These investments will enable SIB to continue to make an existing Government guarantee scheme, the Recovery Loan Scheme, more easily accessible to charities and social enterprises who have been impacted by COVID-19 and need funds to help them to recover, adapt and grow – allowing them to continue to serve their communities in need. Charities and social enterprises can apply to access the funding by clicking here.

SIB will work with experienced social investor partners on the delivery of the Fund, including Big Issue Invest, Charity Bank, Key Fund, Resonance, Wales Council for Voluntary Action and Social Investment Scotland.

Many of the Fund’s delivery partners helped to deliver the previous Resilience and Recovery Loan Fund (RRLF). RRLF approved £28 million in total funding to 77 charities and social enterprises across the UK, with £24 million worth of loans and over £3.9 million worth of grants approved – RRLF was recently awarded Social Investment Deal of the Year at the 2021 UK Social Enterprise Awards.

All funding purposes will be considered, including refinancing of existing debt onto more patient terms. For eligible charities and social enterprises, funding terms available are:

  • Loans of £100,000-£1.5 million. (BAME-led organisations and those based in Wales and Scotland will be able to apply for loans upwards of £50,000)
  • A loan term of 1-6-years, with no penalty for early repayment
  • A capital repayment holiday for up to one year, with regular payments thereafter
  • A fixed interest fee of 7.9% per year, with an arrangement fee of 2.5% to 3% - depending on size of the loan

Rob Benfield, Director of Investments at Social Investment Business said: COVID-19 has had significant impact on the business models of charities and social enterprises right across the UK. At a time of continued economic uncertainty we are looking to support organisations with the funding they need to adapt delivery models, diversify income streams; manage cash flow; or purchase new technology. I am delighted that our new investors have chosen to invest in the Recovery Loan Fund, recognising the opportunity it offers to play a role in creating fairer communities and improving people’s lives as we emerge from the pandemic.”

Gabriel Ng, Social Impact Manager, Big Society Capital said: “We believe Government guarantee schemes can play a critical role in enabling social enterprises and charities to thrive, so we are pleased to be supporting the Recovery Loan Fund – which will ensure they remain accessible for the sector during these extremely challenging times. We look forward to working with Social Investment Business to build on the achievements of the Resilience and Recovery Loan Fund (RRLF), which supported nearly 80 organisations in staying resilient during tough times – from enabling schoolchildren in Manchester to stay on top of their studies, to helping communities in Cardiff to get vaccinated. With 40% of its loans going to the 30% most deprived areas in the UK, we have seen how this model can play a significant role in supporting ‘left behind’ communities.”

How to apply

The Recovery Loan Fund is open for applications until 11.59pm on Friday 20th May 2022.

For more information, including full eligibility criteria, product details and FAQs, visit:


About the Recovery Loan Scheme

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 and 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.

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 2002, SIB has deployed and managed over £500m of loans and grants, directly supporting more than 3000 charities and social enterprises.

For media enquiries contact:

Anissa Morris, Business Development Lead

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