Futurebuilders launches new Tender Fund (30/06/2008)

30.06.2008

Futurebuilders England today launched a new interest-free loan fund for third sector organisations struggling to meet the cost of tendering for public sector contracts.

The £1m Tender Fund is intended to help third sector providers win contracts where prohibitive tendering costs would otherwise make it difficult for them to bid.

Jonathan Lewis, Chief Executive of Futurebuilders England said: “We know there are organisations with the skills to bid for and win public sector contracts who simply can’t afford the costs involved in preparing competitive bids.

“Our conversations with the sector tell us that providers often need money to fund tendering related costs such as legal bills, financial expertise, staffing backfill and advice from procurement specialists.

“We want to be as flexible as possible with the finance we offer and respond to the sector’s needs, so we set up this fund specifically to help address this problem. The new Tender Fund will provide interest-free three year loans of between £3,000 and £50,000. This will help organisations who simply need a smaller sum of money to get them through the tendering stage.

“We are determined to get as many third sector organisations as possible winning contracts to deliver public services, and we feel this new Fund is one way we can help.”

Phil Hope, Minister for the Third Sector said: “Third sector organisations have an important part to play in the Government’s pursuit of excellence in public services. They are particularly good at reaching out to the most disadvantaged people who can sometimes be unwilling to use state services. Charities, voluntary groups and social enterprises can also bring additional benefits to a public service like involving the local community perhaps by using volunteers or employing local people.

“I want to support more third sector organisations that would like to be involved in public services to have that opportunity. The new Futurebuilders tender fund is highly innovative and really at the cutting edge of projects designed to help the third sector develop its public service role. I’m sure the sector will make excellent use of the fund.”

To find out more about the Tender Fund, or to apply for a Tender Fund loan, call 0191 261 5200 or email info@futurebuilders-england.org.uk.

There is no closing date for applications, and the Fund will be available on a first come, first served basis until the £1m runs out.

Ends.

For media enquiries, please contact Jayna Danckert or James Smith at Futurebuilders England on 0207 927 6346/56.

Notes to editor

About Futurebuilders England

• Futurebuilders England is a unique £215m fund offering support and investment to help third sector organisations win contracts to deliver public services. It is funded by the Office of the Third Sector in the Cabinet Office.
• Since 1 April 2008 Futurebuilders England has been under the management of the Adventure Capital Fund (ACF).
• To date, Futurebuilders has offered over £138 million in investments to nearly 270 organisations.
• For further information visit www.futurebuilders-england.org.uk

About the Tender Fund

• The Tender Fund is a loan investment fund to help third sector organisations with the costs of tendering for public sector contracts.
• Organisations may apply for a minimum investment of £3000 and a maximum of £50,000 (depending on the size of the contract).
• Loans will be repayable at 0% interest rate if repaid within three years.
• There is a limited pot of £1m available for this fund. The money will be allocated on a first come first served basis.

To be eligible for an investment from the Tender Fund, organisations must be:

• third sector organisations (voluntary and community organisations, charities, social enterprises, cooperatives and mutuals).
• preparing to tender for a specific public service contract
• unable to secure a loan for this purpose from a commercial lender
• reasonably likely to win the tender, and likely to be able to repay a loan
• working to benefit service users in England

For the purpose of the Tender Fund, a ‘public service contract’ is defined as any contract directly held with a statutory body, such as local authorities, PCTs, or Quangos that receive their funding from the state (this doesn’t include lottery funding), including Europe. Benefits paid to individuals from a statutory body for a specific purpose (e.g. housing benefit, working family tax credit and disability living allowance) are not considered ‘contracts’ when determining eligibility for the Tender Fund, although we do regard this as statutory income when determining eligibility for our primary fund. A contract that an applicant is bidding for can include a re-negotiation/re-tender of an existing contract already held.