Resilience and Recovery Loan Fund for Charities and Social Enterprises

The Resilience & Recovery Loan Fund (RRLF) offers support to Charities and Social Enterprises which have been affected by the Covid-19 pandemic.  This fund was originally announced in the latter part of 2020 and the closing date for applications has now been extended to the end of March 2021.

The Fund offers loans of between £100,000 and £1,500,000 to eligible organisations.  The Fund has been established to provide support for organisations which aim to improve people’s lives and the intention is that this scheme should be more accessible to such organisations than the Coronavirus Business Interruption Loan Scheme.

Who is eligible?

In order to apply, an organisation must satisfy various eligibility criteria. It must:

• be a charity or social enterprise. This will include registered charities, community interest companies (CICs) and community benefit societies
• be based in the UK (and the loan must be used to support trading in the UK)
• have been operating for at least two years
• have turnover (gross income) between £400,000 and £45,000,000
• derive more than 50% of its gross income from trading activities (this does not apply if the organisation is a registered charity or further education college)
• be able to confirm that it has been adversely impacted by Covid-19
• be able to demonstrate that it has a “viable” business proposition
• be able to demonstrate that it is not an “undertaking in difficulty”
• be able to demonstrate that outcomes of the product or services provided are specifically relevant to improving people’s lives, even if improving people’s lives is a secondary outcome area of the organisation
• be able to confirm that the loan will not be used in an “excluded sector”

What are the terms of an RRLF loan?

The principal terms of loans offered under this scheme are:

• loan amount between £100,000 and £1,500,000
• loan term between 1 and 5 years
• capital repayment holiday for the first 12 months
• no interest payable by the borrower for the first 12 months
• interest of 6.5% or 7.0% per annum (depending on the loan term) for subsequent years
• no arrangement fee
• loans up to £250,000 will be unsecured; security is required for larger amounts.

How do I apply?

Further information on eligibility criteria, terms and conditions and application guidance is available at:

https://www.sibgroup.org.uk/resilience-and-recovery-loan-fund

The closing date for applications is 11.59pm on Wednesday 31 March 2021.  Applications will be considered on a first come first served basis.

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