Linklaters advises three lenders on their investment into The Recovery Loan Fund, run by leading social investor in the UK

Linklaters has advised three lenders on their investment into the Recovery Loan Fund, run by Social Investment Business (SIB), a leading social investor in the UK.

The Archbishop’s Council, Big Society Capital, MFS Investment Management and Treebeard Trust will join founding investor the Fusion21 Foundation, taking funds raised to date to £21.5m (including follow-on commitments). 

The Recovery Loan Fund will enable SIB to continue to make an existing Government guarantee scheme, the Recovery Loan Scheme, more easily accessible to charities and social enterprises who have been impacted by the Covid-19 pandemic and need funds to help them to recover, adapt and grow – allowing them to continue to serve their communities in need.

SIB provides finance to create fairer communities and improve people’s lives. Since 2002, SIB has deployed and managed over £500m of loans and grants, directly supporting more than 3,000 charities and social enterprises.

The Linklaters team comprised of partner Tom Quoroll and associates Marco Moraes and Ashley Chan.

Tom Quoroll, Partner at Linklaters said:

“We are pleased to have played a role in expanding this vital scheme which seeks to safeguard and nurture the important work that charities and social enterprises deliver across the UK. We believe that finance has the potential to improve society and are committed to supporting social finance projects, like the Recovery Loan Fund, to achieve their goals.”

Linklaters has acted on significant social finance transactions in recent years, including supporting small social finance funds, establishing the first exchange-listed corporate bond issued by a charity in the UK and acting on the world’s first development impact bond. Over £100m has been raised to date through finance raisings the firm has acted on. 

One of the most recent and high-profile mandates is the firm’s advice to Gavi, the Vaccine Alliance on the conception, design and implementation of the COVAX Facility to pool the resources of the world’s developed economies to finance the R&D, procurement and distribution of a Covid-19 vaccine in an equitable and fair manner across the world.