Recovery Loan Fund

PARTNER NAME

Recovery Loan Fund

FIRST INVESTMENT

2021

THEME

Vulnerable Communities

INVESTMENT TYPE

Debt

The pandemic has impacted significantly on the VCSE sector, with many organisations requiring grants/investments for a variety of purposes - to pivot business models, diversify income streams, shift to remote service delivery, and also refinance short-term/inflexible debt. The Social Investment Business's research has found that 81% of social enterprises and charities are looking to identify alternative sources of income in the year ahead, 29% are providing new products or services, and 54% are planning to increase their use of digital systems.

The Recovery Loan Fund is a continuation of the Resilience and Recovery Loan fund - a fund set-up during Covid-19 which raised and dispersed £20m+ within a matter of months to provide liquidity to the VCSE sector as it grappled with the impact of Covid-19. The RLF will be used in much the same way as the RRLF: unsecured funding for a variety of purposes, including supporting charities to shift to online delivery whilst face-to-face interaction was limited, providing working capital and funding for Capex (e.g. essential maintenance), and supporting the development of new revenue streams.