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18 October 2021

Recovery Loan Fund announced by Social Investment Business and founding investor the Fusion21 Foundation

Social Investment Business (SIB) is launching a new loan fund to support UK charities and social enterprises in the post-Covid recovery.

The charity – which provides finance to create fairer communities and improve people’s lives – has announced its Recovery Loan Fund (the Fund) will open for applications on Monday 18th October 2021.

Offering repayable and flexible finance, the Fund will work under the terms of the British Business Bank Recovery Loan Scheme (RLS) – which supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic. The aspiration is for the Fund to ultimately be at least £25m in size.

At a time of continued economic uncertainty and a growing demand for services delivered by charities and social enterprises, eligible organisations may need funding to adapt delivery models, diversify income streams; manage cash flow; or purchase new technology.

Founding investor, the Fusion21 Foundation – the charity parent and social investor of social enterprise and public sector procurement provider Fusion21, is committing its own capital alongside that of the SIB Foundation. Passionate about funding organisations to help build brighter futures for communities across the UK, the Fusion21 Foundation seeks to achieve sustainable, positive, and life-changing outcomes through its investments.

SIB is an accredited lender under the Government’s Recovery Loan Scheme, administered by British Business Bank and will work with experienced social investor partners on the delivery of the Fund, including Big Issue Invest, Charity Bank, Key Fund, Resonance Limited, Wales Council for Voluntary Action and Social Investment Scotland. Weil, Gotshal & Manges LLP are acting as legal counsel.

Many of the Fund’s delivery partners helped to deliver the previous Resilience and Recovery Loan Fund (RRLF). RRLF approved £28m in total funding to 77 charities and social enterprises across the UK, with £24m worth of loans and over £3.9m worth of grants approved.

For eligible charities and social enterprises, the Fund offers:

● Loans worth £100,000-£1.5m. (BAME-led organisations and those based in Wales and Scotland will be able to apply for loans upwards of £50,000)

● A loan term of 1-6-years, with no penalty for early repayment

● A capital repayment holiday for up to one year, with regular payments thereafter

● A fixed interest fee of 7.9% per year, with an arrangement fee of 2.5% to 3% – depending on size of the loan

Nick Temple, Chief Executive of SIB, said:.

“Charities and social enterprises continue to need patience, flexibility and responsiveness in the post-Covid recovery. This Fund aims to meet those needs, providing the right finance at the right time for those that need it. Our ongoing commitment is to be as responsive and transparent to our customers as possible.”

“The Recovery Loan Fund succeeds the Resilience and Recovery Loan Fund (RRLF), and we’re pleased to be building on the partnerships that have helped us achieve so much in the last 18 months, but also establishing new ones: not least Fusion 21 Foundation alongside us as a founding investor.”

Dave Neilson, Chief Executive of Fusion21, commented:

“As champions of social change, we’re proud the Fusion21 Foundation’s investment will be supporting charities and social enterprises across the country who have been hardest hit by COVID-19 – this is an area we have already pledged significant support to as a Foundation.

“The voluntary, community and social enterprise sector has worked tirelessly to continue delivering vital community services throughout the pandemic – often with very limited resources. Our contributions will make a positive social impact to both eligible organisations and their communities.”

How to apply

The Recovery Loan Fund will open for applications at 10am on Monday 18th October 2021.

For more information, including full eligibility criteria, product details and FAQs, visit:

About the Recovery Loan Scheme/British Business Bank 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 and 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

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, so if SIB can offer you the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they will look to do so. Businesses who have taken out a CBILS, Coronavirus Large Business Interruption Loan Scheme (CLBILS) or Bounce Back Loan Scheme (BBLS) facility are able to access the new scheme. The Scheme will run until 31 December 2021, subject to review

About Social Investment Business

Social Investment Business provides finance to create fairer communities and improve people’s lives. They do this by providing the money and support they need directly, partnering to support them effectively and, using their knowledge to inform their own work and influence others.

Since 2002, SIB has deployed and managed over £500m of loans and grants, directly supporting more than 3000 charities and social enterprises.

For media enquiries contact:

Nina Glen, Business Development Lead

Email :

About Fusion21 and the Fusion21 Foundation

Fusion21 is a public sector membership organisation that provides procurement and social value services to its members.

An integral part of the Fusion21 story, our Foundation embodies the social change we all want to see, championing positive health and well-being, financial inclusion, housing, and employability for all. We believe everyone deserves the best chance of a healthy, happy future. Through our foundation projects, we work with partners and communities to make that happen. To bring about sustainable, lifelong change for all, we also fund research and initiatives aimed at finding new solutions to complex societal challenges.

For more information about Fusion21 visit:

For more information about the Fusion21 Foundation visit:

For further information contact:

Faye Foster, Marketing and Communications Manager


Call: 07903 332986

Photo from the Gloucestershire Gateway Trust (GGT) – a community development and regeneration charity that received funding from the predecessor to the Recovery Loan Fund (the Resilience & Recovery Loan Fund).GGT used this funding to provide the local community with food supplies and wellbeing support during the pandemic (photo credit: Thousand Word Media).