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.
Frequently Asked Questions:
For detailed eligibility, funding uses, and application guidance, visit our FAQs.
