The Recovery Loan Fund has reopened for new applications from charities. The announcement comes in the wake of the British Business Bank’s decision to exempt charities from a requirement to have significant levels of trading income, which hindered a significant number from previously accessing the fund. Social investor leaders had pressured the government to loosen the eligibility rules for charities, given how many rely on non-trading income for their activities.
The Recovery Loan Fund provides vital financing between £100k and £1.5m to social organisations based in England, Wales and Scotland. In total, over £4m of new funding is available to help charities to sustain and grow their activities.
The programme was established by Social Investment Business to make an existing Government guarantee scheme, the Recovery Loan Scheme, more easily accessible to the social sector.