The Resilience & Recovery Loan Fund (RRLF) is a new fund for social enterprises and charities that are improving people’s lives across the UK who are experiencing disruption to their normal business model as a result of COVID-19.
RRLF is intended for those organisations who face a problem because expected income and activity has been delayed or disrupted. A loan of between £100,000-£500,0000 may help with this, providing working capital until normal business can commence again.
Purposes that are included:
- Lending until government payments are received (e.g. contracts, furlough etc).
- Lending to cover delays in trade payments (trade debtors).
- Lending to support the rapid scaling up of an existing business model to meet an increased demand for services during the crisis.
- Lending to provide a bridge to cover revenue shortfall for proven and profitable trading activity. Trading or retail models that rely heavily on footfall / shared office space that are likely to continue to be affected by social distancing are unlikely to be suitable/prove viability. (If you work within these models (trading/ retail heavily reliant on footfall/ shared office space), but were profitable prior to COVID-19, and feel you can demonstrate viability, you can apply.)
|Term:||A minimum of 1 year and a maximum of 3 years|
|Interest fee:||9% per annum interest rate charged for the first twelve months to reflect the higher risk to the fund during the capital repayment holiday|
(covered by Government and no charge to the borrower)
6.5% per annum for years 2 and 3 (after principal payments start)Interest calculated on the declining outstanding balancePayable quarterly in arrearsDefault interest rate
2.5% above the fixed rate to reflect the higher risk of no capital repayments in line with the initial period
|Arrangement fee:||4% on the value of the loan (covered by Government and no charge to the borrower)|
|Drawdown:||Full amount drawn down on signingNo redrawing of repaid amounts|
|Repayment:||Capital repayment holiday for 12 months. Amortised quarterly repayments in equal instalments commencing 12 months from drawdown|
|Prepayment:||Permitted at any time without penalty|
|Security:||All loans of under £250k will be provided unsecured.|
For loans of £250k and over security will be taken in the form of a standard fixed and floating charge, where readily available with exceptions made only in exceptional circumstances.
Loans do not work for every organisation. Please read the application guidance carefully before applying.
Deadline: Continuous rolling programme.
For more information and how to apply please click here.
Other Loans Funds
Kent Community Foundation: Coronavirus Emergency Bridging Loans
Kent Community Foundation is offering unsecured loans of up to £60,000 (£100,000 for exceptional cases) to charities, CICs and CIOs in Kent and Medway to help ‘bridge’ the gap in funding as a result of Coronavirus. This loan includes an immediate six month repayment holiday. This loan is not managed by Funding for All. Please…Covid 19 Loans
Social Investment Business: Resilience & Recovery Loan Fund
The Resilience & Recovery Loan Fund (RRLF) is a new fund for social enterprises and charities that are improving people’s lives across the UK who are experiencing disruption to their normal business model as a result of COVID-19. RRLF is intended for those organisations who face a problem because expected income and activity has been delayed or…Heritage Loans
Architectural Heritage Fund: Heritage Impact Fund
Architectural Heritage Fund’s Heritage Impact Fund offers tailored finance for charities, social enterprises and community businesses across the UK to develop sustainable heritage at the very heart of vibrant local economies. Loans from £25,000 to £500,000 for up to three years with tailored terms and both flexible and incentivised interest rates are available for impactful projects.…Loans
ASDA Foundation: First Steps Enterprise Fund
ASDA Foundation’s First Steps Enterprise Fund, managed by Social Investment Business, offers funding packages of up to £30,000 or up to £50,000 for exceptional cases (90% loan and 10% grant). The loan element is charged at 5% (fixed) to be repaid over a period of four years with an optional capital holiday for the first year. Charities…