Futurebuilders England announces launch of new programmes from 3 November

Futurebuilders, a government backed investment programme for the Third Sector that provides loans and other financial products - including some grant funding - has provided details of its new programmes, which will be available from 3rd November 2008.

The Futurebuilders programme is designed to prepare Third Sector organisations for bidding for public sector contracts (for a list of Devon County Council contract opportunities, go to: https://www.devontenders.gov.uk/systems/devoncms.nsf).  Futurebuilders is designed to support:

The new programmes are:

(1)  The Tender Fund Loan - is designed to help organisations planning to tender for specific public sector contracts. Organisations may apply for between £3,000 and £50,000 and Tender Fund loans are interest free for up to three years. The fund must be used to meet tendering costs such as legal fees, financial expertise or hiring a bid writer.

(2)  Small Organisation Tender Fund - New scheme to help smaller third sector groups successfully bid for public sector contracts.

Thanks to £150,000 funding from the Cabinet Office’s National Programme for Third Sector Commissioning (NPTSC), the £220,000 Small Organisations Tender Fund will offer grants to cover capacity building work and the costs of tendering for contracts. 

The scheme is open to third sector organisations that have been operating for at least a year and have an annual turnover of less than £250,000. It can provide grants worth up to 10% of the overall contract value, to a maximum of £15,000. 

To be eligible for funding, organisations must meet all of the following criteria: 

• Be a third sector organisation with a turnover of less than £250,000.
• Be operating for a minimum of one year.
• Be tendering for a specific public sector service contract worth a minimum of £30,000.
• There must be a "good chance" the organisation can win the tender.
• The organisation must deliver a high quality service and have the potential to significantly increase returns in the future.
• Must not have received another grant from the programme within the past 24 months.
• Must not have received more than £130,000 subsidy from public funds during the past three years.
• The beneficiaries of the project must live in England. 

In addition, applications will be assessed against: 

• The organisation's track record and capabilities.
• The strength of the business case.
• The organisation's existing reserves and what it is prepared to contribute to the project.
• The abilities of key individuals. 

There is no application form – interested organisations are asked to outline their project, including information about their financial background, the contract they are intending to bid for, and a breakdown of costs the grant is required for. 

(3) The Consortium Development Fund - will provide grants up to £15,000 for small organisations wishing to form a consortium to jointly deliver public services.

The lead agency must have a turnover of less than £250,000. Grants may be used to cover the costs associated with the setting up of the group.

(4) Business Development Grant Fund - grants up to £15,000 for small organisations. Can be used for professional fees, feasibility studies, market research and business planning. Grants must lead to an application to the Futurebuilders Full Investment Fund (see below). Grants may not be used for general running costs or to identify potential public sector contracts.

The Full Investment Fund will continue to be available. This is primarily a capital loan scheme, although a grant may be included to cover revenue or capacity building costs (for example, hiring a Finance Officer on a fixed-term contract). The current capital/revenue ratio is 80/20.  The minimum investment is £50,000, although each package is unique and designed to meet the individual needs of the organisation. Loans are offered at 6% fixed rate interest.

Futurebuilders works closely with applicants and is supportive of organisations that are unable to repay loans, and will consider rescheduling payments and repayment holidays. As a risk funder, it is appreciative of the risks encountered by agencies and will provide consultancy support to advise client agencies (for example, on how to diversify funding streams).  Futurebuilders has only written off two loans in the four years in which it's been operating.

An example of a successful South West agency that has grown with the aid of Futurebuilders funding can be found at: http://www.futurebuilders-england.org.uk/investmentsearchdetail/Coasts/242/none/0/0/0.aspx.

Futurebuilders is currently redesigning its website, which will be relaunched on 3 November. The on-line application form will be replaced by an enquiry form, through which potential applicants can 'test the water' for their ideas.  Futurebuilders staff are keen to discuss proposals with would-be applicants and can be contacted on 0191 261 5200.

For more details about Futurebuilders go to: www.futurebuilders-england.org.uk or email info@futurebuilders-england.org.uk.