Social Investment Business (SIB), Access – The Foundation for Social investment, The Ubele Initiative and Create Equity have today announced £2m worth of grant and support funding to be made available to be used alongside the Recovery Loan Fund to support Black and minoritised ethnicity-led charities and social enterprises based in and delivering impact in England.
The recent report from the Adebowale Commission highlighted the structural barriers that Black-led social enterprises face in accessing finance. SIB’s analysis of data on over 4,000 organisations in its diversity dashboard found that Black and minoritised ethnicity-led organisations tend to be smaller in size and have experienced systemic and historic under-investment.
This new grant funding from Access’ Flexible Finance programme will be deployed to address these historical imbalances, offering the following:
- Unrestricted grants alongside loans with up to 100% of the loan value if needed
- Bespoke business support
- Eligibility for RLF reduced from £400k turnover to £200k turnover
- Minimum loan size reduced to £50k from £100k
This tailored funding and support for will be delivered by Social Investment Business in partnership with The Ubele Initiative and Create Equity. They will bring their networks, expertise and understanding to the project, and provide support to organisations throughout the funding application and assessment process.
The Recovery Loan Fund continues to be primarily a loan fund and applicants must apply for a loan in order to be awarded a blended grant. Grants will only be awarded to organisations that are Black and minoritised ethnicity-led: this means 51% or above of the board and senior management team are from Black or minoritised ethnic communities. The grants and support will be used to widen accessibility of the fund to groups that have traditionally found it more difficult to secure investment.
The £2m of grants and support will be matched with £2m of loan money from the Recovery Loan Fund with that money coming from the following investors who are supporting this initiative: founding investor the Fusion21 Foundation, Church of England’s social investment programme, Big Society Capital, MFS Investment Management and Treebeard Trust.
For more information, visit the Social Investment Business Recovery Loan Fund web page