12/08/09

By Andrew Holt

Futurebuilders England has cut the interest rates on its key funds for those third sector organisations looking for immediate investment.

Organisations that are looking for new funding through Futurebuilders Funds and the Social Enterprise Investment Fund (SEIF) will be eligible for the new flexible rates.

The new interest rates include:

• Interest-free for 2 years
This option offers a 0% interest rate for an initial two year period. After the two years the interest rate will revert to our standard fixed rate.

• Fixed interest of 2% for 5 years
This option offers a fixed interest rate of 2% for the first five years. After five years the interest rate will revert to our standard fixed rate.

• Floating rate of 2% over base rate
This option offers a floating interest rate of 2% over the Bank of England base rate for the duration of the loan term. The minimum interest rate is set at 2% and the maximum at 10%.

To qualify for the new rates, all new investments will have to be agreed by 30 November 2009 and the funds drawn down by 31 March 2010.

Sue Peters, managing director of investments at Futurebuilders, commented: "In hard times, Futurebuilders is doing its very best to help third sector organisations access affordable capital. We're seeing historic lows in UK interest rates and this is our response to the current economic climate."

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