What is the Flexible Finance Fund?
The Flexible Finance Fund is a partnership between Social Investment Business, The Ubele Initiative, and Create Equity. It offers £4m in funding and support to 15-25 Black and Racially Minoritised charities and social enterprises in England, helping them grow, acquire assets, and enhance resilience.
The fund combines a flexible grant with a loan from the Recovery Loan Fund. The grant can cover up to 100% of the loan amount (between 50% and 100%, capped at £200k), with direct support from The Ubele Initiative or Create Equity throughout the application process. Loan and grant amounts range from £50k to £1.5m, repayable over 1 to 6 years.
The fund is backed by the Government’s Growth Guarantee Scheme.
Who is it for?
The Recovery Loan Fund with Flexible Finance targets Black and Racially Minoritised charities and social enterprises in England working to improve lives or environmental conditions.
Eligibility Criteria:
- Black and Racially Minoritised-led: 51% or more of board and senior management must be from these backgrounds.
- Legally constituted: Must be a registered charity or social enterprise.
- Social Benefit Focus: Must work to improve lives or the environment.
- Operational History: At least two years of operation.
- Turnover: Minimum £200k in the last financial year (there is some flexibility with lower amounts).
- No Insolvency Issues: Must not be under insolvency proceedings.
- Previous Finance Limit: No prior repayable finance above £25k (excluding Bounce Back Loans).
- Location: Must operate in England.
Need Help?
Have questions about your eligibility or the application process? Contact: sheila.forster@ubele.org.
What Can You Receive?
Loan Details:
- Product: Loan and grant (grant up to 100% of loan, capped at £200k).
- Amount: £50k to £1.5m (excluding grant).
- Repayment Term: 1-6 years.
- Interest Rate: 7.9% fixed per annum.
- Arrangement Fee: 2.5% (loans over £500k) or 3% (loans £500k or less).
- Repayment: Up to 12-month capital repayment holiday (optional); no early repayment fees.
Security:
- Loans up to £250k: Unsecured
- Loans over £250k: Security through a fixed and floating charge if available
Grant Details:
- Type: Unrestricted grant
- Amount: £50k to £200k (50%-100% of loan amount)
- Disbursement: Single payment alongside loan drawdown
How to Apply:
Additional Support:
The Ubele Initiative is one of the support partners and offers pre- and post-application support, including application assistance, document preparation, and post-funding advice. When you apply for funding, please select Ubele from the drop-down list.
How the Fund Works:
Social Investment Business collaborates with The Ubele Initiative and Create Equity, with grant funding from Access – The Foundation for Social Investment. Loan capital comes from the Recovery Loan Fund, supported by investors such as Fusion21 Foundation and others.
About the Growth Guarantee Scheme:
The Growth Guarantee Scheme launched in July 2024, supporting UK small businesses in accessing finance. It provides a 70% government-backed guarantee to lenders while borrowers remain fully liable.
FAQs: Your Questions Answered
- What exactly is this funding offer?
It’s a blended finance package, a mix of grant (which you don’t pay back) and loan (which you do, under fair and flexible terms). It’s designed to help social and community-focused organisations grow sustainably.
- Do I need to have everything in place before I speak to you?
Not at all! You can talk to us before you even start an application. We have a dedicated advisor who’ll explain the offer, answer your questions, and help you decide which option it’s right for you.
- What kind of support will I get during the application process?
You’ll get guidance to help you complete your application with confidence. This includes advice around business planning, cash flow, and understanding the financial side of things. While the application is your responsibility, we’re here to help you prepare and answer questions along the way.
- What does ‘investment ready’ mean and what if I’m not?
Being investment ready means your application, finances, and delivery plans are strong enough to present to the Investment Committee. If you’re not quite there yet, that’s okay, we will try and help you improve with practical recommendations and honest feedback.
- Who decides if I get the funding?
The final decision is made by the Investment Committee, but your application will not be presented until we and the Relationship Manager believe you’re ready. Our role is to support and strengthen your case, so you go in with the best chance possible.
- Will I have someone guiding me personally?
Yes. Once you apply, you’ll be matched with a Relationship Manager and continue working with our dedicated advisor. If you’re successful, you’ll also get a Social Investment Business (SIB) Manager for longer-term support.
- What happens if I’m successful – how quickly will I get the funds?
If approved, you’ll receive your funding in approx. 6 weeks. But even better, you’ll continue to receive support from the Relationship Manager to grow your organisation, not just repay the loan. They are with you for an extended period.
- Do I have to repay the grant part?
No. The grant portion is non-repayable. Only the loan part needs to be repaid, and we’ll make sure you understand the terms clearly before you commit.
- What if I have a small organisation or I’m new to this?
That’s completely fine. We work with many smaller or emerging organisations. What matters most is your impact, your vision, and your willingness to work with us to grow.
- What’s the best way to get started?
The easiest way is to join an Open Surgery webinar (check our website and Newsletter for dates) or book a one-to-one chat with our advisor. There’s no pressure, it’s just a chance to explore the opportunity and ask questions.
Or if you believe you meet all the criteria for the funding opportunities, feel free to upload your application. Remember to hit the Ubele tab when asked in the application process.
