Recovery Loan Fund

Government-guaranteed loans to help charities and social enterprises emerge from the pandemic.


The challenge

As the social sector emerges from COVID-19, charities and social enterprises are facing a new set of challenges. Some have experienced increased demand for their services as a result of the lingering negative social effects of the pandemic and lockdowns. Still others have had to undergo business model pivots to cope with the new environment or refinance borrowing taken on to survive the crisis.

Our approach

When the pandemic first hit, Better Society Capital worked with Social Investment Business to support the creation of the £25 million Resilience and Recovery Loan Fund which helped nearly 80 social sector organisations to survive and maintain their services during tough times. Our investment in the Recovery Loan Fund builds on this success to ensure these organisations have the financing they need in the recovery phase. We believe that the Recovery Loan Fund can provide a model for the sustainable provision of capital to the sector and we have structured our investment to encourage other investors to come in alongside us.

The Fund

The Recovery Loan Fund, managed by Social Investment Business in partnership with several other social lenders, delivers loans backed by the Government’s Recovery Loan Scheme to social sector organisations. The wide network of partners ensures that the Fund can reach a diverse set of borrowers, while the Government guarantee helps keep costs low for borrowers and attracts investors. A grant provided by Access -The Foundation for Social Investment also allows the Fund to target BAME-led organisations and provide additional support to such borrowers.

  • Fund size

    £21.5 million
  • Better Society Capital commitment

    £15 million

Key information

  • Geography

    UK wide
  • Investment type

    Enterprise debt
  • Fund manager

    Social Investment Business
  • Investment status

  • Investment date

  • Term

    10 years

Sustainable development goals

  • 1: No Poverty End poverty in all its forms everywhere
  • 3: Good Health and Well-being Ensure healthy lives and promote well-being for all at all ages
  • 4: Quality Education Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
  • 8: Decent Work and Economic Growth Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • 10: Reduced Inequality Reduce inequality within and among countries