Resilience and Recovery Loan Fund

Emergency loans for social enterprises and charities affected by the Coronavirus pandemic.

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Challenge

The impact of the coronavirus pandemic is being felt acutely by charities and social enterprises. It is predicted that charities alone could miss out on more than £4 billion of income in the 12-week period following the introduction of the Government measures to halt the spread of the virus. A number of organisations may be unable to operate, face making redundancies or may be threatened with collapse.

Tackling a challenge of this scale requires a combined effort and a broad package of grants and business support. For some social enterprises and charities facing cash flow issues and disruption to their trading, repayable finance could help them deliver crucial services at a time when they are needed most.

However, a number of organisations are unable to access emergency repayable finance from the main government-backed Coronavirus Business Interruption Loan Scheme.

Approach

For those organisations requiring loans and investment, Big Society Capital has worked with social investors and the Department for Digital, Culture, Media and Sport (DCMS) to create a £100 million emergency response. The measures include a new £25 million Resilience and Recovery Loan Fund, alongside changes to the Community Investment Enterprise Facility (CIEF) to allows loans under the Coronavirus Business Interruption Loan Scheme and the repurposing of up to £50 million of existing capital.

Fund

The Resilience and Recovery Loan Fund, managed by Social Investment Business (SIB), enables social lenders to provide emergency loans to social enterprises and charities that are experiencing disruption as a result of COVID-19. Loans can be used to provide working capital until normal business resumes, cover delays in trade payments, or meet the increased demand for services, without requiring personal guarantees and charging no fees or interest for 12 months. Big Society Capital has provided an initial £25 million in funds, with loans backed by the Government’s existing Coronavirus Business Interruption Loan Scheme and issued through SIB working with Big Issue InvestCAF VenturesomeCharity BankResonance, Social Investment Scotland, Social and Sustainable Capital and Wales Council for Voluntary Action.

RRLF closes to new applications at 5pm on Friday 13 November.  

Applicants will be considered on a first-come, first-served basis and the closing date of the fund is subject to constant review.

  • Fund size

    £25 million
  • Big Society Capital commitment

    £25 million

Key information

  • Geography

    UK wide
  • Investment type

    Enterprise debt
  • Fund manager

    Social Investment Business
  • Investment status

    Current
  • Investment date

    2020
  • Term

    Up to 6 years
  • Applications close

    Friday 13 November

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
  • 7: Affordable and Clean Energy Ensure access to affordable, reliable, sustainable and modern energy 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
  • 11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable
Rebecca McCartney

Rebecca MacDonald

Investment Director (on secondment)
Talk to me about:
New investment ideas, how we invest our money, and what we do to support our investments