Emergency loans are available for charities and social enterprises through the new Resilience and Recovery Loan Fund, run by Social Investment Business (alongside partners) and funded by Big Society Capital.
The £25 million fund will provide individual loans of between £100,000 and £500,000 to charities and social enterprises affected by the coronavirus crisis, without requiring personal guarantees and charging no fees or interest for 12 months.
The fund is intended for those charities, Community Interest Companies (CICs) and community benefit societies who face a problem because expected income and activity has been delayed or disrupted. A loan may help with this, providing working capital until normal business can resume.
Organisations can take out loans for a minimum of 12 months and a maximum of three years, according to a statement from Social Investment Business. There will be no fees or interest charged on the first year of any loan, with interest rising to 6.5 per cent in years two and three. Furthermore, the loan fund has access to the Treasury’s Coronavirus Business Interruption Loan Scheme, which means that lenders are protected by a government-backed guarantee for the loan repayments.
To find out more information about the fund and apply, click here.