£5m fund for charities and social enterprises launched

A £5m fund to support charities, social enterprises, co-operatives and community interest companies has been launched by Royal Bank of Scotland and NatWest.

The group claims it is the first time a fund of this size has been made available to organisations that would not normally qualify for mainstream bank lending.

Eligible businesses can apply for loans of between £30,000 and £500,000. Community development finance institutions, which distribute funds to other businesses, can apply for loans of between £200,000 and £1m.

Successful applicants must be able to demonstrate they are financially sustainable and will deliver a positive impact to society and / or the environment.

Peter Ibbetson, small business chairman NatWest and RBS said: “As the economy struggles, demand is rising for this type
of finance.

“More businesses are being set up with a social or community focus. These businesses, including charities, social enterprises, community interest companies and co-operatives, may be small but represent a fast growing sector which
should be given every opportunity to play a role in the recovery.”

Business and Enterprise Minister Mark Prisk said: “It is vital to improve the flow of finance from banks to all sectors of the economy.

“The Government supports any initiative that could help make this happen and I hope this fund will create new opportunities for community businesses to get access to mainstream finance. These enterprises play a key part in the Big Society and the links forged by initiatives like this will help them move forward and grow.”