Emergency funding for social sector organisations
A £100 million programme of loans and investment is being put together to help get emergency funding to social enterprises, charities and small businesses in disadvantaged parts of the UK.
Big Society Capital has announced the new measures to help those affected by the COVID-19 pandemic will include:
- A new £25 million Resilience and Recovery Loan Fund will provide social enterprises and charities with emergency loans with no fees or interest for 12 months. Social Investment Business (SIB) will manage the new fund which is expected to open to applications in mid-April 2020 with the first loans completed by the start of May.
- Smaller, emergency loans will also be made available on the same no fee, no interest for 12 months basis to small businesses and social enterprises in more deprived areas, by ensuring the Community Investment Enterprise Facility (CIEF), administered by Social Investment Scotland, can effectively access the CBIL scheme. There will be an initial investment of £29 million of Big Society Capital's and other investors' capital, while additional institutional investors are being approached to co-invest.
- Up to a further £50 million which Big Society Capital will reprioritise and repurpose over coming months to address emergency funding needs among social enterprises and charities, either through the Resilience and Recovery Loan Fund or alternative funding vehicles as appropriate.
If you would like to discuss this in more detail, please get in touch with your usual Jerroms contact.