Consortia Fund

The Consortia Fund offers a combination of loan finance, £50,000 or above, and professional support specifically for consortium groups aiming to work together to win public service contracts.

Consortia are defined as two or more organisations that enter into a formal agreement, or form a separate entity to jointly bid for, and deliver, public service contracts.

This Fund operates in a similar way to our Full Investment Fund, in that investment packages are tailor-made to suit the individual needs of the consortium. There is no upper limit to the size of investment, but the minimum investment package is £50,000.

Interest rates

Our Investment Officers will work with you to understand the consequences of each interest rate option but the ultimate decision will lie with you. Your investment package will be tailored to meet your particular needs and circumstances. Our standard interest rate is 6% for the duration of the loan term and is available for all investments.

Eligibility criteria

• The applicant can be the lead body organisation or a separate entity that has been created to manage the consortia
• Your consortium must have a specific contract in mind and have the groundwork of the consortia structure in place (see below for how our professional support can help you finalise this work)
• Your consortium must possess the potential to win contracts to deliver public services
• At least 51% of the consortium?s project?s (as opposed to member organisation?s) long- term income must come, directly or indirectly, from public funds
• The applicant organisation must be willing and able to take on a loan
• Part or all of the project should be unbankable (in other words, as a consortium you must be unable to secure a loan for this project from a commercial bank)
• Your consortium must deliver a high quality service and have the potential for significantly increased returns on it in the future
• The ultimate beneficiaries of your project must live in England

Funds will only be given to high-quality applicants. In addition to the above, we will also consider:

• The track record of the organisations involved
• The strength of the business case
• Each member?s commitment to supporting a realistic and fair service level agreement
• The abilities of key individuals
• Whether an investment could potentially breach State Aid regulations

What assistance can the professional consultancy support element provide?

Every investment includes professional support. This will come from a Futurebuilders investment officer who will often work with a business consultant to provide specific advice depending on the project. Professional support will typically include advice or training about:

• Tailoring the structure of the consortia to the specific contract
• Finalising governing and legal documents for the consortia
• Identifying additional partners
• Preparing a strong tender bid
• Contract negotiation with public bodies
• Property and legal advice
• Full cost recovery courses or reviews
• Marketing and PR support

How to apply

There is no application form for this fund.

Please note the Futurebuilders England Fund is currently closed to new applications.

What we need from you

We will assess your application mainly by phone. In all cases, we will ask you to:

• Be available to discuss the application on the phone
• Provide historic financial information quickly (annual accounts and up to date management accounts)
• Provide a breakdown of the costs an investment is needed to cover
• Provide details about the organisations involved in the consortia
• Provide contact details for your potential purchaser, if appropriate

During the phone conversation we will ask you to:

• Explain how the applicant organisation is constituted and confirm that it is willing and able to take on a loan
• Explain the details of any existing contracts and/or contracts you are planning on bidding for
• Explain why you need investment and what costs you need an investment to cover
• Explain how you plan to repay the loan