Charitable, not-for-profit and commercial organisations operating within England’s arts, museums and heritage sectors can apply for a loan from noon on 21 August.
The £270 million Culture Recovery Fund – Repayable Finance Programme aims to support cultural organisations which were financially sustainable before COVID-19 but are now at imminent risk of failure and have exhausted all other options for increasing their resilience.
The loans are part of the Government’s £1.57 billion Culture Recovery Fund and will be administered by Arts Council England.
Loans start at £3 million. There is no upper limit. The loan terms include a payment term of up to 20 years, an initial repayment holiday of up to four years and a 2% interest rate per annum.
The money can be used to help prepare for re-opening and re-starting work or to remain cost-efficient in the short-term in order to reopen at a later date if, for example, reopening under social distancing is not permissible or does not represent a value for money approach. Proportionate redundancy pay outs are eligible, where decisions have been made to reduce staff.
Cultural organisations in England that are properly constituted with a governing document may apply. Eligible organisations include charitable, not-for-profit and commercial enterprises operating within the arts, museums and heritage sectors, including independent cinemas, comedy clubs and nightclubs.
The investments made through the programme are intended to ensure that organisations can return to sustainable operations no later than 31 March 2022.
Applications will be accepted from 12 noon on 21 August 2020 to 12 noon on 9 September 2020.