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Barclays Commercial Bank agrees to provide £9.5m in matched funding of  Modernisation Fund

16 June 2009

Futurebuilders England have announced a new partnership with Barclays Commercial Bank, whereby the bank has agreed to allocate £9.5 million to match the funding of the Government’s Modernisation Fund.

Barclays will work with Futurebuilders, on a case by case basis, to provide loans to third sector organisations to help them become more resilient to the impact of the economic downturn.  Where larger Third Sector organisations require funding in excess of the Modernisation Fund’s £500,000 loan limit, Barclays will look to provide the additional funding required.

The bank has also agreed to provide professional support to charities on how best to structure their finances as well as help organise and jointly run seminars designed to give Charity Finance teams’ guidance, support and the right financial know-how to support borrowing.

Angela Smith, Minister for the Third Sector, said:

“The services that charities, voluntary groups and social enterprises provide are never more vital than in times of recession. The Modernisation Fund is a part of the Government’s strategy to help them do more for the people who need help now and to emerge from the recession stronger and more resilient. I wholeheartedly thank Barclays for their vision in contributing to this innovative scheme.”  

Ian Charlesworth, Futurebuilder’s Director of Enterprise, said:

“This new partnership with Barclays provides a welcome boost to the funds available to the sector.  In these difficult economic times, it is important that Third Sector organisations can still access the funding they need to help them weather the recession”.

Jon Mosscrop, Head of Charities, Barclays Commercial Bank, added:

“The partnership with Futurebuilders further exemplifies our ongoing commitment and support to the Third Sector in the current economic climate. By offering the management advisory expertise, as well as financial support to the sector, we believe Third Sector organisations will be better equipped to withstand the economic challenges they may currently be facing, and also increase their competitiveness and enable organisations to be ready to maximise their opportunities for growth when the economy recovers.”

In its bid to help support third sector organisations in their search for finance, Futurebuilders is keen to establish similar partnerships with other high street banks.

The Modernisation Fund was set up by Government to help Third Sector organisations be more resilient to the impact of the economic downturn. It is focused on helping organisations providing services to those worst hit by the recession.

The funding will help in two main ways:

• Bursaries of £1,000 for organisations to pay for initial advice on how they can become more resilient and work more closely with others to increase their impact, and grants of up to £10,000 to help pay costs involved in moving towards collaboration or merger.
• Interest-free loans of between £30,000 and £500,000 for third sector organisations with existing plans for mergers and collaboration or other activities to help them prepare for difficult times.

Interested third sector Organisations should visit http://www.modernisationfund.org.uk/ or call the dedicated information line on 0191 269 2277.