Frequently Asked Questions
What is the Cost of Living Fund?
The Cost of Living Fund (COLF) seeks to support charities and social enterprises working to address the cost-of-living crisis, by providing grant funding to eligible organisations alongside the RLF loan.
The target audience is eligible UK charities and social enterprises based in England, Wales and Scotland who are improving people’s lives, and already working to support people impacted by cost-of-living.
The fund is managed by SIB and supported by Access – the Foundation for Social Investment’s Cost of Living programme.
Who is the Cost of Living Fund for?
The COLF grant aims to fund organisations delivering products and services to support people impacted by the cost-of-living crisis.
The main aims of the fund are:
· Fund organisations already supporting people impacted by the cost-of living crisis and delivering the most acute cost-of-living related solutions.
· Fund organisations to maintain or continue services to people impacted by the cost-of-living crisis that would otherwise need to be cut; and/ or increase or launch new services to meet increased demand and significantly expand cost of living support.
Unfortunately, this fund cannot be used to support organisations that have been impacted by inflation themselves). If you yourself have been affected by the cost-of-living crisis, you may still be eligible to apply for an RLF loan to help with these costs but you will not be eligible to receive a COLF grant.
Do we have to meet all eligibility criteria?
To be eligible for this fund, you must meet all of the criteria for the Recovery Loan Fund, namely:
· Incorporated voluntary, community or social enterprise organisation*,
· Constituted for social benefit improving people’s lives or the environments they live,
· Minimum of two years’ operating activity,
· Minimum turnover of £400k in the last financial year,
· Not subject to any insolvency proceedings, and
· Viable borrowing proposal.
As well as meet the following COLF criteria:
· Based in England and delivering your social/ environmental impact predominantly in England.
· Delivering most of your activity in IMD** 1-3.
· Looking to maintain, increase, launch or improve products or services for people impacted by the cost-of-living crisis.
* Must be registered as a Charity, Community Interest Company or Community Benefit Society. If registered as any other legal entity, it must have a social object, asset lock and restriction on profit distribution (must distribute less than 50% of post-tax profits) written into its governing documents.
** IMD = Index of Multiple Deprivation.
How can I find out what IMD number my organisation works in?
You can check the IMD number of the primary postcode your organisation operates in here.
How will my eligibility for the Cost of Living Fund be assessed?
There are no further application forms or questions for this fund. Instead, your eligibility for the COLF will be reviewed by your relationship manager, as part of the regular assessment process, and if you’re eligible, they will work with you to apply for an amount that reflects your needs.
Can I have this grant without the Recovery Loan Fund loan?
No. This fund is discretionary and is available to eligible organisations alongside a loan from the RLF loan only. The fund is not intended to provide standalone grant funding.
My organisation already has an active RLF loan, can I receive this funding?
Unfortunately, this grant funding applies to new RLF loans only.
Can you explain further how the combined loan/grant (blended finance) works and what the process is?
The product you are applying for is the Recovery Loan Fund with the addition of grant support from the Cost of Living fund. The COLF grant can provide up to 50% of requested loan amount (capped at £250k) and your Relationship Manager will work with you to create an application that reflects your need.
Is the funding received as a lump sum or staggered?
The Grant is dispersed as a lump sum alongside the drawdown of the Loan. It is not usually staggered in any way.
I want to use the funding to refinance existing debt, is this allowed?
No, whilst your RLF loan can be used to refinance existing debt, it is not permitted to use the grant portion from the Cost of Living Fund for this purpose.
Is anything ineligible?
The following sectors are ineligible:
· Deposit taking Banks and EEA Banks;
· Building Societies;
· Insurers (other than insurance brokers);
· Public sector organisations (as classified by the Office of National Statistics);
· State funded primary or secondary schools.
Is there either a closing date for applying or will the fund be closed once a certain number/value of applications are received?
As it stands, we have £1.5 million to cost-of-living grant support available which will be awarded on a first come first served basis. This grant add on will either cease once all of this money has been invested, or by 31st December 2024, unless we decide to extend the fund. The SIB website will be kept up to date with any deadlines or updates to the fund.
What should I expect when completing the application form?
The application is relatively straight forward and follows the same format as the standard RLF application. It collects mostly contact information and organisation data. It doesn’t have lots of free text questions.
You will also be asked to provide your last 2 sets of approved accounts (showing figures for 3 years, if available), latest set of management accounts, and 12-month cashflow forecast for the current financial year.