Community Business Loan
Alternative funding for community business, charities or social enterprises.Get in touch
Security may be required. Product fees may apply. Over 18s only.
Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
First and foremost, we’re funding companies who are investment ready. They’re delivering high social value - in a sustainable way. They may be a viable charity, social enterprise, community interest company or co-operative.
The size of the loan you can get depends on the type of your organisation. As a community business, you can access loan funding from £30,000 to £750,000.
We tailor loans to your business' requirements. You’ll get flexible terms - including capital repayment holidays if you need them. Interest is charged during the period of underpayment and your monthly payments may increase afterwards.
Perhaps your enterprise is getting off the ground. Maybe it’s ready to grow and evolve. Take the right next steps; grow your management structure, develop leadership skills, gain access to markets and finance. Our sector experts will structure the loan to suit your operation.
Read all our FAQs about the social community loan.
Icon expand Do I need to be a bank customer to apply for a loan?
No, we accept applications from any eligible organisation, whether or not they are a bank customer.
Icon expand Is there a fee for applying for the loan?
No, although you'll need to pay an arrangement/commitment fee when you accept any loan offer.
Icon expand What are the terms and conditions of the loan?
Each loan is considered on its merits and the terms and conditions will vary between loans. The terms will be agreed as part of the loan approval process. Security will be required.
Icon expand How much can I borrow?
The minimum loan amount is £30,000 (£200,000 if you are a CDFI) and the maximum amount is £500,000 (£750,000 if you are a CDFI). The amount of any loan available will depend upon our assessment of the proposition. We will require that you put a significant stake into the whole proposition.
Icon expand How will the loan be paid?
We’ll pay all money directly to your bank account. Normally we’ll pay your loan all at once. In certain situations we may pay you in stages. This depends on the size and type of your project and we’ll talk it through with you first.
Icon expand What interest rate is the loan set at?
We'll consider each loan on its merits. The interest rate will depend upon our assessment of the risks associated with the applicant and the project.
Icon expand How long do I have to pay the loan back?
We'll consider the length of each loan on its merits. It'll depend on what the funds are for as well as our assessment of the risks involved.
Icon expand Can we put more than one project forward for support?
Yes, subject to a maximum overall exposure of the charity to any one borrower of £500,000 (CDFIs £750,000).
Icon expand Will we receive feedback on our loan application if unsuccessful?
If you request it, we'll give feedback as part of the decline process should you be unsuccessful in applying for a loan.
Icon expand Can we appeal against a loan decision?
You cannot appeal. The loan request is reviewed in great detail by our loans officers and credit panel. If your application is unsuccessful, we will not review it until you present new information.
Icon expand If my loan application is unsuccessful, can I reapply?
Yes. If there has been a change in your circumstances or you are able to present new information, please contact the team.