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Recovery Loan Fund

Type: Loan
Value: £150k - £1.5m
Location: UK
Currently open? : Yes

What is the Recovery Loan Fund?

The Recovery Loan Fund provides loans of between £150k and £1.5m to UK charities and social enterprises based in England, Wales and Scotland. 

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

Who is it for?

The Recovery Loan Fund is for UK charities and social enterprises based in England, Wales and Scotland who 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 England, Wales, or Scotland
  • Legally constituted and a registered charity or social enterprise.
  • Primarily constituted for social benefit 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 organisation is based in Scotland or Wales)
  • Not subject to any insolvency proceedings e.g. winding-up, administration, insolvency, bankruptcy

See the Application Form Guidance (linked below) for a list of eligible/ ineligible income items.

A loan cannot be used to support the following sectors:

  • Banks, Building Societies, Non-bank Deposit-taking Organisations
  • Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State funded primary and secondary schools

What could I receive?


Product Loan   
Amount £150k to £1.5m

Organisations 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  


How do I apply?


Click ‘Apply Now’ to start your Recovery Loan Fund application.

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 8156 0020.

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).

SIB works with experienced social investor partners to deliver the fund: Big Issue InvestCharity Bank, Key FundResonance and Wales Council for Voluntary Action, and Black and Racially Minoritised 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 new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small business as they look to invest and grow. 

The Recovery Loan Scheme aims to improver the terms on offer to borrowers. If a lender can offer a commercial loan better terms, they will do so.

Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022, although in some cases it may reduce the amount a business can borrow.

Recovery Loan Scheme-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.

Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.

Subsidy: The assistance provided through RLS, like many Government-backed business support activities, could be regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow.

All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.

To find out more about the requirements, please visit out Subsidy Guidance.

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. Visit *

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

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