COVID-19 Loan Fund Expanded & Improved - What is RRLF?
The Resilience and Recovery Loan Fund (RRLF) is an emergency loan fund which will provide repayable finance to charities and social enterprises who are experiencing disruption as a result of COVID-19 and is intended for such organisations who have an otherwise viable business model. It has been established to make the Government’s existing Coronavirus Business Interruption Loan Scheme (CBILS) more easily accessible to these entities.
RRLF is not appropriate for everyone and will not work for all charities and social enterprises. For many, grants or other support may be more appropriate (for potential alternative sources, see our COVID-19 Emergency Funding page) and organisations should also consider other government schemes (see our COVID-19 Resource Hub for more information). For smaller loans of up to £50k organisations can consider the Government’s Bounce Back Loan Scheme.
What are the RRLF’s key product details?
Key features of the product include:
- loans will be for between £100k and £1.5m.
- these loans will be interest-free and fee-free to the customer for the first 12 months
- the loan term will be a minimum of 1 year and a maximum of 3 years.
interest will be charged at 6.5% per annum for years 2 and 3 (after principal payments start).
- Applicants should also be aware that any monies received under the CBILS does not reduce the borrower’s liability in any way – as with any loan product, the borrower remains 100% liable.
Applicants should also be aware that changes may be made to RRLF as the CBILS scheme evolves. It may take some time for these changes to filter through to the SIB website.
Is my organisation eligible?
This Fund is only for UK charities and social enterprises which fulfil the eligibility criteria of both the Fund and CBILS – the full list of eligibility criteria can be found on the SIB website.
How can I apply and how long will it take?
There is an application portal on the SIB website and the first page of the application is intended to give clear guidance on your likely eligibility. The aim is for the process to take 2-4 weeks from start to finish.