£100m to Support the UK’s Social Sector Organisations During Coronavirus Crisis
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 that are affected by the coronavirus/COVID-19 pandemic.
Big Society Capital has announced the new measures 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. Further details are expected this week.
- 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 emerging funding needs among social enterprises and charities, either through the Resilience and Recovery Loan Fund or alternative funding vehicles as appropriate.
Commenting on the £100 million programme, Big Society Capital’s Chief Investment Officer, Jeremy Rogers, said,
“Charities and social enterprises are facing huge challenges as a result of the pandemic. Many are racing to adapt service delivery and facing an uncertain future. While many require emergency grants, others tell us they need loans and investment to continue to deliver crucial services to those most in need. We are, therefore, doing everything we can to adapt our existing funding agreements so that no organisation is making payments it can’t afford and to find new routes to create a level playing field for social enterprises and charities to access the investment best suited to them at this critical time.”