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New COVID-19 recovery loan fund supports UK charities & social enterprises

Published : 24/11/21 | Categories: Funding | News |

Open now, the Recovery Loan Fund is a new scheme from Social Investment Business and founding investor the Fusion21 Foundation to help UK charities and social enterprises in the ‘post-COVID recovery’.

*Updated 24 November 2021: Deadline extended to Friday 20 May 2022*

The recently launched Recovery Loan Fund is currently available for voluntary organisations in the UK that have been impacted by COVID-19 and need funds to help them to survive, recover and grow.

The fund offers eligible organisations loans of between £100k-£1.5m*, with applications reviewed on a first come, first served basis. The deadline to apply is midnight on Friday 20 May 2022


The Recovery Loan Fund has been established by Social Investment Business (SIB) to make an existing Government guarantee scheme, the Recovery Loan Scheme, more easily accessible to charities and social enterprises.

The fund will lend to organisations that are improving people’s lives, or the environment they live in, across the UK. All funding purposes will be considered including refinancing of existing debt onto more patient terms.

For eligible charities and social enterprises, the fund offers:

  • Loans worth £100,000-£1.5m. (*Black, Asian and Minority Ethnic led organisations and those based in Wales and Scotland will be able to apply for loans upwards of £50,000)
  • A loan term of one to six 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


This new scheme is being run by Social Investment Business, a charity which provides finance to create fairer communities and improve people’s lives. The Recovery Loan Fund is made up of initial investment from SIB with Fusion21 Foundation committing its own capital alongside this.

In addition, SIB will work with experienced social investor partners to deliver the fund: Big Issue InvestCharity Bank, Key FundResonanceSocial Investment Scotland and Wales Council for Voluntary Action. Other delivery partners may be added in the future.


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

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