COVID-19 – social investment


26 Mar 2020

This is a latest update, for our investees and VCS sector, as we respond to matters that continue to escalate at a very fast pace.

As you know we have always sought to work in partnership with our investees and encourage you to speak to us early when faced with challenging times. So, if you do have concerns, please contact us so we can discuss what support you may require. We remain open for business although our team are currently working from home and are in regular contact with each other.

We are continuing with our discussions with our major funders including Big Society Capital and other key influencers in the sector including Social Investment Business. In this respect a joint letter has been issued to the government seeking assurances and support specifically for the sector along the lines already announced.

We, along with our colleagues recognise that whilst the Coronavirus Business Interruption Loan Scheme and the Coronavirus Job Retention Scheme are open for all businesses including the VCSE sector there could be many cases in our sector who may be ineligible for example due to a lower percentage of income being classed as trading income.

A copy of the letter which we have added our support to is here:

 What can you do now:

 Where you feel you may be significantly impacted because of the Coronavirus over the coming months we would suggest creating a number of financial projections for the next 12 months.

  • Firstly, one that you would have expected to have achieved under normal conditions i.e. without the Coronavirus. This will give you a base case of what you were hoping to achieve.
  • Secondly, now look at how your income might be affected e.g. will some of your contracts pay a reduced amount if you cannot deliver a full service. Where you operate a trading income will your clients still purchase from you during this period. This second projection will be your worst case that is keeping your costs as they currently are but with reduced income.
  • Thirdly, with your likely reduced income what costs could you defer, save. E.g. could you negotiate delaying paying your creditors, if operating from rented premises will your landlord look favourably at deferring / suspending rent.

 Armed with the 3 scenarios above will put you in a good position to understand your likely need over the next 3 – 6 months and help you with your discussions.

 Talk to your Bankers, Accountants, and HR specialists initially who will be able to advise you on the success or otherwise of potential support that could be provided through the above Government Schemes.

 But also, please please, keep us in the picture, as we are working with other social lenders to protect the sector it is vital we know the likely pressures you may be facing.


Peter Gilson






Posted By
Ian Richards

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