Flexible Finance Fund
What is the Flexible Finance Fund?
The Flexible Finance Fund provides a package of loan and grant funding and support to UK Black and Racially Minoritised charities and social enterprises based in England to help them to grow, take on assets and become more resilient.
The fund is a partnership between Social Investment Business, The Ubele Initiative and Create Equity.
It is supported by the Government guarantee scheme – Growth Guarantee Scheme.
Who is it for?
The Flexible Finance Fund is for Black and Racially Minoritised charities and social enterprises based in England and improving people’s lives, or the environment they live in, within England.
Not sure if this fund is for you? Want to talk about your eligibility or any questions you have about the application process? We’re happy to help, just get in touch at: loans@sibgroup.org.uk
FAQ’s
Am I eligible?
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- Based in England.
- Black and Racially Minoritised-led: 51% or above of the organisation’s board and senior management team must be from Black and Racially Minoritised backgrounds.
- Legally constituted and a registered charity or social enterprise*.
- Primarily constituted for social benefit improving people’s lives or the environments they live in, within England.
- Operating for at least two years.
- Minimum turnover of £200k in the last financial year.
- Not subject to any insolvency proceedings e.g., winding-up, administration, insolvency, bankruptcy.
- No previous repayable finance: Your organisation must not have received repayable finance of greater than £25k. This excludes Bounce Back Loans.
**This includes any UK Charity, Community Interest Company or Community Benefit Society, or if none of these then must comply with the BSC Governance Principles.
The following sectors are not eligible:
- Banks, Building Societies, Non-bank Deposit-taking Organisations.
- Insurers and Reinsurers (excluding Insurance Brokers).
- Public sector bodies.
- State funded primary and secondary schools.
See the Application Form Guidance for further information on eligibility, including a list of eligible/ ineligible items.
What could I receive?
Blend of Loan and Grant
| Product | Blend of loan and unrestricted grant | |
| Loan Amount | £50k to £1.5m (exclusive of grant) | |
| Grant Amount | £50k – £200k (50% to 100% of the loan amount capped at £200k) Paid alongside the loan |
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| Repayment Term | 1 – 6 years (inclusive of any capital repayment holiday) | |
| Interest Rate | 7.9% fixed per annum | |
| Arrangement Fee | 2.5% on loans of £500k or greater 3% on loans £500k or less |
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| Repayment |
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| Security |
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| Purpose | Any. The grant element cannot be used for refinancing | |
Flexible Finance Support Grant
| Product | Restricted support grant |
| Size | Up to £15k |
| Purpose | To help address/improve specific area of weakness/s identified during funding assessment e.g. governance, financial management etc. Only available for the blended loan and grant customers. |
Additional Support
The Ubele Initiative and Create Equity will bring their networks, expertise and understanding to the Fund, and provide support to organisations throughout the funding application and assessment process.
To find out more, please contact The Ubele Initiative and Create Equity.
How does the fund work?
SIB works with experienced Black and Racially Minoritised partners The Ubele Initiative and Create Equity to deliver the fund. SIB assesses applications for funding and manages the funding awards. The Ubele Initiative and Create Equity support applicants throughout the process.
The loan monies come from the Community Builders Fund investors. Access – The Foundation for Social Investment provide the grant funding.
What is the Government’s Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is a UK Government Guarantee Scheme launched in July 2024 and is designed to support access to finance for UK small business as they look to invest and grow.
The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan better term, they will do so.
Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2024 are not prevented from accessing GGS from July 2024, although in some cases it may reduce the amount a business can borrow.
Growth Guarantee Scheme-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.
Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
Business Finance Support
The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cash flow and a list of independent advice services.
Legal Notice
The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit: https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme
Subsidy
The assistance provided through this fund could be regarded as a Subsidy. Please visit our Subsidy page.
Visit our Flexible Finance FAQs page.
How to apply
- Submit application online
- We'll contact you with any questions
- Your application goes to the committee
- We'll be in touch with our decision
Related Pages
Chat to us
This fund is closed but we’re here to help. Get in touch:
- Contact Number: 020 4591 2400
- Contact Email: loans@sibgroup.org.uk