Recovery Loan Fund for UK charities and social enterprises

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The Recovery Loan Fund (RLF – “the Fund”) provides loans to UK charities and social enterprises who are improving people’s lives or the environment they live in. Charity Bank is a delivery partner for RLF.

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.

Subject to fulfilling certain eligibility criteria, 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. Charity Bank is a delivery partner for the Fund alongside other experienced social investor partners.

A summary of the Fund is included on this page. Prospective eligible applicants should refer to the Recovery Loan Fund page on the Social Investment Business website where full details of RLF can be found.

Is my organisation eligible?

This Fund is only for UK charities and social enterprises which fulfil the eligibility criteria – the full list of eligibility criteria can be found on the SIB website and includes:

Registered charities, community interest companies, community benefit societies – in line with Big Society Capital’s governance principles and who have:

  • been actively operating for at least 2 years;
  • a minimum turnover of £400k in its last financial year (or £200k if the organisation is *BAME-led, or based in Scotland or Wales);
  • more than 50% of income from trading activity**

*Black and Ethnic Minority (BAME) Led = 51% or above of board and SMT from BAME background.

**Further details on the eligibility criteria and the specific application form questions can be found in the Application Form Questions & Guidance (available to download at the bottom of the Fund page under ‘Attached Files’) on the SIB website.

What are the RLF’s key product details?

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 of £50,000 or more).
  • 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% -3% depending on the size of the loan.

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

How can I apply?

The Recovery Loan Fund is open for applications.

About Charity Bank

Charity Bank is the loans and savings bank owned by and committed to supporting the social sector. Since 2002, we have used our savers’ money to make more than 1,100 loans totalling over £400m to housing, education, social care, community and other social purpose organisations.

Find out more about us here.

The Recovery Loan Fund (RLF) is managed by Social Investment Business (SIB) who make the ultimate lending decision. Charity Bank is one of a number of organisations who are delivery partners for this Fund. RLF is not appropriate for all organisations and eligibility criteria applies. Borrowers remain 100% liable for the debt.

Nothing in this article constitutes an invitation to engage in investment activity nor is it advice or a recommendation and professional advice should be taken before any course of action is pursued.