Sir Stephen Bubb, chair of Social Investment Business, has called on the government to use the £28m in loan repayments accrued by the now closed Futurebuilders fund, for more loans to the social sector.

The Futurebuilders fund, which was managed by the Social Investment Business on behalf of government, is currently sitting on £28m in loan repayments while the Cabinet Office decides what to do with the funds.

It was closed by government two years ago having providing loans and grants to charities worth £155m over the last five years.

Sir Stephen told civilsociety.co.uk that government should free up the £28m to create more loans for the charity sector:

“Futurebuilders was part of the original idea and concept behind social finance. You make loans to an organisation and as it grows and repays the money you can re-loan it. It’s a virtuous circle, whereas grants just go.

“By blocking Futurebuilders using this money to make more loans this has been stopped.”

At the time of closing the fund minister for civil society, Nick Hurd, said future revenue from the Futurebuilders programme would be used to provide grants to stimulate the creation and development of neighbourhood groups.

This week, a Cabinet Office spokeswoman said: “Any returns from the Futurebuilders fund will be reinvested into building a bigger, stronger society. We will update further on our plans in due course.”

Sir Stephen has said government needs to speed up the process:

“Government is talking about its growth strategy and how it can encourage small enterprises, while we are sitting on £28m which we can use for loans.”

Civilsociety.co.uk asked various sector leaders where they thought the £28m would be best used. See the slideshow below for their suggestions (you can find the pause button by hovering over the top of the slideshow):