fbpx

Cabinet Office puts £60m behind social ventures struggling for investment

Nick Hurd, the Minister for Civil Society, says the move will help to build a social investment market that is accessible to everyone

The government will invest £60m in helping social ventures struggling to access finance to prepare themselves to receive social investment, the Cabinet Office has announced today.

The funding will come from loan repayments received by government from the former Futurebuilders fund, which made loans and grants of about £150m to voluntary sector organisations to help them take on public service delivery contracts under the Labour government before it was closed to new investment under the coalition.

Social ventures that could benefit from “business capacity building support” – such as short-term legal advice, governance restructuring or financial analysis – would be targeted as part of the new initiative, the Cabinet Office said.

The programme will be modelled on the Cabinet Office’s pilot £10m Investment and Contract Readiness Fund, which was launched in 2011 and operated for three years. The government said that social ventures that received finance from the fund received £38 for every £1 of government grant.

Read the rest of this article at Third Sector