The Royal Bank of Scotland (RBS) has launched a Community Business Loan Fund to help potential and existing social entrepreneurs who are unable to access finance through normal mainstream channels. This £5 million Fund offers financial support for the purpose of starting or expanding a community-based business. Community Business Loan is administered the RBSG Micro-finance Fund, an independent charity. RBS expects to support in the region of 1,000 businesses through the scheme.
Eligible businesses can apply for loans of between £30,000 and £500,000. Community Development Finance Institutions, which allocate funds to other firms, may apply for loans of between £200,000 and £1 million. To be eligible for funding, your organisation must be all of the following:
- A business with clear social or environmental objectives which reinvests profits for a social purpose
- An established third-sector organisation located and trading in the UK
- Investment ready in terms of management, governance and financial position