Futurebuilders launch new tender fund

Futurebuilders England recently launched a new loan fund for third-sector organisations struggling with the costs of tendering for public sector contracts. The £1m Tender Fund will help groups win contracts where prohibitive tendering costs would otherwise make it difficult for them to bid.

The fund will enable third-sector businesses to compete more effectively with private companies. Jonathan Lewis, Chief Executive of Futurebuilders England, commented: "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."

Third-sector applicants who simply need small sums of money to get through the tendering stages will be eligible to apply for interest-free, three-year loans of between £3,000 and £50,000. Mr Lewis added: "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, believes that these organisations can bring a great deal of support to public services: "[Third Sector organisations] are particularly good at reaching out to the most disadvantaged people who can sometimes be unwilling to use state services...I'm sure the sector will make excellent use of the fund."