>> Reading Voluntary Action (RVA)

Funding News - 14.4.08

A £215m government-backed investment fund will open its doors to all not-for-profit organisations delivering public services from April 2008. Offering loans-based investment packages, Futurebuilders England provides sustainable finance to organisations that are delivering public services or want to start contracting with public bodies, such as local authorities, primary care trusts or learning and skills councils.

Futurebuilders England offers unique investment packages of loans, combined with grants and professional support. Over half of Futurebuilders’ investees have never borrowed before, so each applicant receives flexible and individual support to ensure it has the right financial, managerial and governance structures to take on a loan and successfully compete for contracts in the public sector.

Futurebuilders has already invested in over 250 third sector, or not-for-profit, organisations including charities, social enterprises, community interest companies, voluntary groups and community organisations. Established in 2004, the Fund was originally only open to organisations working in crime, community cohesion, children and young people, education and learning, and health and social care. From April 2008 it will extend its support to groups working across all areas of public service delivery, including sport and leisure, recreation, environmental projects, waste and recycling, legal aid, and the arts.

Every investment package, including its size and loan to grant ratio, is tailored to meet the individual needs of the investee, but some standard terms apply. Loans are offered at a 6%, often with interest-free periods or repayment holidays built in. They can be used for capital or development projects by start-ups or established organisations. Organisations must be committed to repaying the loan through income from public sector contracts or fees.

So, if you need an investment of £50,000 or more and are getting ready to bid for, and take on, public sector contracts, Futurebuilders could be the Fund for you. There is no upper limit to investments – the largest package to date is £10.2m.

To register your interest before the fund opens, or to find out more about how loan finance can help your organisation achieve sustainability, visit www.futurebuilders-england.org.uk or call 0191 261 5200.