Communitybuilders and the Social Enterprise Investment Fund are under review by the government.

The funds, which are managed by Social Investment Business, will not pay out any more money until the review is carried out.

However, a spokeswoman for SIB said it was still accepting applications for the funds, which are worth £170m combined.

She added: “In common with other government spending, the Communitybuilders programme is being reviewed to ensure it is in line with the government’s objectives for the Big Society agenda.”

Last month, the new government closed down the £200m Futurebuilders programme, which was run by Social Investment Business.

The money paid back by lendees will instead be used to provide grants to stimulate the creation and development of neighbourhood groups, the stated goal of the government's Big Society concept.