Community Business Loan FAQs

Yes, in fact we would ask that you do approach your current Bank or other mainstream lenders before you apply with S&CC. The main reason for this is so you get the best finance product to match your needs and capabilities.

Yes, CICs are eligible for our community loan.

Start-ups can apply, and we review every enquiry on a case by case basis. We would limit the amount we lend to a start-up to make sure we are not putting too much of a financial strain on the organisation from the start.

Every loan is tailored to fit the needs of the organisation. We can offer capital repayment holidays where appropriate (Interest will continue to incur during this period).

Yes, provided you can evidence the grant has been approved and the timeframe for receiving the grant funding.

No, you will need to be able to evidence other sustainable streams of income. Grant funding is not always guaranteed which could create cashflow issues if you are reliant on them to service debt.

Yes, take a look at our “Ready to Apply” section, we would love to hear from you.

We offer fixed rate loan between 4% to 8% based on your social impact.

We will always offer fixed rate loans.

It depends on the type of finance but we typically we charge a 1% fee.

No, there are no early repayment charges or hidden fees with any of our loans.

We will never take a personal guarantee, however there are times when it is appropriate to take security over an asset (e.g. a building) if we are lending to purchase it. We will always make sure you have the correct legal advice before we take any legal charge.

If security is required, then the borrower will cover the cost, but we will always obtain quotes for you to compare and approve before solicitors are instructed.

No, we would never take a charge over your personal residential property.

Depending on your trading position there are different options available to you. The Good Finance website is a good start to understanding your options.

Absolutely, in fact we would encourage it. This will allow you to be sustainable and support your growth.

Yes, donations can form a big part of revenue, however in order to be sustainable we would recommend having other sources of earned income as well, so you are not solely reliant on donations or grants.

The best legal entity format will depend on a number of things including your aims and motivations; we would recommend you seek legal and tax advice for your individual circumstances.