Aims/priorities: A package of funding support including grants and loans from the Recovery Loan Fund are available for Black and Racially Minoritised charities and social enterprises based in England who are improving people's lives or the environment they live in.
Who can apply? Eligible organisations must:
- Be Black and Racially Minoritised-led, which means 51% or above of the organisation's board and senior management team must be from Black and Racially Minoritised backgrounds.
- Be based in England.
- Be legally constituted and a registered charity or social enterprise.
- Be primarily constituted for social benefit improving people's lives or the environments they live in.
- Have been operating for at least two years.
- Have a minimum turnover of £200,000 in its last financial year.
- Not be subject to any insolvency proceedings, e.g., winding-up, administration, insolvency, bankruptcy.
- Have no previous repayable finance – organisations must not have received repayable finance of greater than £25,000. This excludes Bounce Back Loans.
The Black and Racially Minoritised grouping covers everyone outside the category ‘White British’ (ie, White English / Welsh / Scottish / Northern Irish). Groups classified as Black and Racially Minoritised include people identifying as Asian / Asian British; Black / African / Caribbean / Black British; White Irish or Gypsy, Traveller or Irish Traveller; mixed or multiple ethnic groups; Arab or Latinx; or any other ‘non-White’ British category.
Social enterprise registration means applicants must:
- Be an incorporated voluntary, community or social enterprise organisation, based in and delivering social/ environmental impact in England.
- Also be registered in England as either a Charity, Community Interest Company or Community Benefit Society or, if they are another type of legal entity, they must have a social object, asset lock and restriction on profit distribution (must distribute less than 50% of post-tax profits) written into their governing documents.
- Have a viable borrowing request (that can reasonably be expected to meet its repayment obligations).
Grant amount: A blended loan and grant is available:
- Loans are £50,000 to £1.5 million with a term of one to six years.
- Unrestricted grants of £50,000 to £200,000 (ranges from 50% to 100% of the loan amount capped at £200,000).
Loans have an interest rate of 7.9% fixed per annum and arrangement fees of 2.5% for loans of £500,000 or greater and 3% for loans £500,000 or less. The scheme offers a capital repayment holiday for up to one year, with regular payments thereafter.
All loans of up to and including £250,000 will be provided unsecured. For loans of over £250,000, security will be taken in the form of a standard fixed and floating charge.
Application process: An online application form and guidance documents are available on the SIB website. Applicants are encouraged to contact SIB to discuss their eligibility or for further information about the fund.
Deadline: Applications can be made at any time.
Contact information: Email: loans@sibgroup.org.uk
Website: Funding | Social Investment Business