Social Investment Business has set up a new loan fund which will start investing this September.

Social Investment Business (SIB) is currently asking for expressions of interest from charities and social enterprises which are looking for lending this year, and can pay interest rates of between 5 and 8 per cent over a 5 – 10 year period.

A SIB spokeswoman said it had decided to get expressions of interest before investment to guide the direction of the loan fund: “Organisations who apply now will be first in line for investments later this year,” she said.

She could not confirm the size of the loan fund.