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Recovery Loan Fund

Type: Loan
Value: £100k - £1.5m
Location: UK
Currently open? : No

What is the Recovery Loan Fund?

The Recovery Loan Fund provides loans of between £100k and £1.5m to UK charities and social enterprises based in England, Wales and Scotland who have been impacted by Covid-19 and need funding to survive, recover and grow

The fund also provides grants and support (alongside the loan) to **Black and Minoritised Ethnicity -led charities and social enterprises that meet the grant criteria. 

The fund is supported by the Government guarantee scheme – Recovery Loan Scheme.

The fund is currently closed for applications, but we hope to open again soon. If you are interested or have any questions, please contact: 


Who is it for?

The Recovery Loan Fund is for UK charities and social enterprises based in England, Wales and Scotland who have been affected by Covid-19 and need funds to help them survive, recover and grow. It is for organisations that are improving people’s lives, or the environment they live in. 

Not sure if this fund is for you? Want to talk about your eligibility or any questions you have about the application process? We’re happy to help, just get in touch at:

Am I eligible?

  • Based in the UK
  • Legally constituted and a registered charity or social enterprise, primarily constituted for social benefit
  • Impacted by Covid-19
  • Improving people’s lives or the environments they live in
  • Operating for at least two years
  • Minimum turnover of £400k in its last financial year (or £200k if the organisations is **Black and Minoritised Ethnicity-led, or based in Scotland or Wales)
  • 50% of turnover from trading activity (registered charities and further education colleges are exempt from this eligibility criteria)
  • Not subject to any insolvency proceedings e.g. winding-up, administration, insolvency, bankruptcy

A loan cannot be used to support the following sectors:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State funded primary and secondary schools

Additional criteria for grant funding alongside a loan:

  • Black and Minoritised Ethnicity-led: 51% or above of the organisation’s board and senior management team must be from Black and Minoritised ethnicity backgrounds.
  • No previous repayable finance: Your organisation must not have received repayable finance of greater than £25k. This excludes Bounce Back Loans.

What could I receive?


Product Loan (+ grant/ support for BAME-Led organisations)
Amount £100k to £1.5m

**BAME-led organisations and those based in Wales and Scotland can apply for loans upwards of £50k

Repayment Term 1 – 6 years
Interest Rate 7.9% per annum fixed
Arrangement fee 2.5% on loans of £500k or greater
3% on loans <£500k
  • Capital repayment holiday of up to 12 months (optional)
  • No early pre-payment fees
  • All loans of up to and including £250k will be provided unsecured
  • For loans of over £250k, security will be taken in the form of a standard fixed and floating charge, where readily available with exceptions made only in exceptional circumstances
Purpose Any, including refinancing of existing debt



Product Unrestricted grant
Size £25k – £200k (ranges from 50% to 100% of the loan amount)
Drawdown Disbursed as a single payment alongside the loan

How do I apply?


Chat to us

Want to chat through the process or find out if this fund is right for you? We’re here to help. Get in touch: or 020 3096 7900

How does the fund work?

We run and set up the fund, with initial investment from SIB and the Fusion21 Foundation – the charity parent and social investor of social enterprise and public sector procurement provider Fusion21. In January 2022, The Archbishop’s Council, Big Society Capital, MFS Investment Management, and Treebeard Trust were announced as further investors in the fund, taking funds raised to date to £21.5m (including follow-on commitments). Access – The Foundation for Social Investment also provides the grant funding, alongside the loan, for Black and Minoritised Ethnicity-led organisations.

SIB works with experienced social investor partners to deliver the fund: Big Issue Invest, CAF Venturesome,  Charity Bank, Key FundResonanceSocial Investment Scotland and Wales Council for Voluntary Action, and Black and Minoritised Ethnicity partners The Ubele Initiative and Create Equity.

We established the fund to make it easier for charities and social enterprises to benefit from the Government’s guarantee scheme – Recovery Loan Scheme.

What is the Government’s Recovery Loan Scheme?

The Recovery Loan Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if SIB can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, we will do so. Businesses who have taken out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) or Bounce Back Loan Scheme (BBLS) are able to access the new scheme.

Guarantee to the Lender: The scheme provides the lender i.e. SIB with a government-backed guarantee in case a borrower is unable to repay their loan.  The guarantee is provided to SIB and not the borrower, and the provision of the guarantee does not remove any of the borrower’s liability for repaying their loan. The borrower always remains 100% liable for the debt. 

Business Finance Support

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cash flow and a list of independent advice services.

Legal Notice

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. 

*Organisations based in Northern Ireland will be referred to Community Finance Ireland.

**We recognise that there is an ongoing debate over how helpful the term Black, Asian and Minority Ethnic (BAME) is to describe the multitude of different ethnic communities and cultural groups within the UK. Our usage here reflects terminology used at the time in data collection, and to help standardisation for comparison to external data sources. It is not intended to reflect personal or community identity. 

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