Social lender Social and Sustainable Capital will launch a second loan fund for the charity sector later this year, with funding from the Social Investment Business and Big Society Capital.

Sasc was set up in 2012 to invest money in the sector, and launched its first fund earlier this year, also with backing from BSC and the SIB.

The new fund will provide secured and unsecured loans to charity sector organisations of between £250,000 and £3m.

It has received a commitment of £15m from Big Society Capital, and will be seeking funds from other investors. The SIB contribution and the total size of the fund have not yet been confirmed.

Ben Rick, co-founder of Sasc (pictured), told Civil Society News the fund would have a very similar profile to the Futurebuilders fund, a £215m government-backed loan fund administered by the SIB, but focus on “unbanked” rather than “unbankable” organisations.

“We want to make simple loans which people understand,” he said. “This type of straightforward finance is what charities and social enterprises are demanding.

“We want to help as many organisations as possible, but we’re also trying to create a track record that will convince other people to come into this space. That means we need to invest in people who pay the money back.”