RBS unveils new loan scheme for social enterprises
Posted by Natalie Brandweiner in Finances on Tue, 18/10/2011 - 10:00
RBS has launched a £5m loan scheme to make finance more accessible for social and community businesses.
Social enterprises and community development finance institutions, many of which struggle to secure mainstream bank lending, can apply for the Community Business Loan from today. Organisations eligible for the loan can request between £30,000 and £500,000, and finance institutions between £200,000 and £1m.
Start-ups and established businesses can both benefit from the scheme but they must be able to show they are financially sustainable and deliver a positive impact to society or the environment.
Peter Ibbetson, small business chairman of 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."
Supporting the scheme, 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."
The scheme is the latest initiative from RBS to "support businesses of all shapes and sizes". The bank also announced on Monday its backing of Shawbrook, a new bank which claims it will lend £250m to small and medium-sized businesses next year.
Businesses can find more details at www.natwest.com/communitybusinessloan and www.rbs.co.uk/communitybusinessloan.
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