More than £25 million of affordable finance is now available for charities and social enterprises affected by Covid-19, it has been announced.
The Resilience and Recovery Loan Fund, which is part of a wider package of support provided by Big Society Capital and Social Investment Business, will provide emergency loans of between £100,000 and £1.5 million to not-for-profit organisations in financial distress.
According to the scheme details, charities and social enterprises will not be required to put up a personal guarantee and no interest fees or interest will be charged for the first 12 months.
Big Society Capital, a leading social impact investor, says charities can use the cash as working capital to get their organisation back on track.
This includes covering delays in trade payments, the rapid scaling up of an existing business model to meet an increased demand for services during the crisis, to provide a bridge to cover revenue shortfall for proven and profitable trading activity, or to provide a bridge to cover charitable donations or fundraising shortfalls for registered charities that have proven historical ability to raise philanthropic money.
To be eligible, your organisation must have been trading for a minimum of two years, have a minimum turnover of £400,000 but no more than £45 million, and be able to demonstrate that the organisation has a “viable” business proposition, among other requirements.
For more information about the Resilience and Recovery Loan Fund and eligibility, please click here.
For support making a finance or grant funding application, please get in touch with our expert team today.