Recovery Loan Fund

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

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 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)
Embargoed for public release until 10 am on 18th October 2021

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 the 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 10 am 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

Skip to content