The government will invest £60m in helping social ventures struggling to access finance to prepare themselves to receive social investment, the Cabinet Office has announced.
The funding will come from loan repayments from the former Futurebuilders fund, which made loans and grants of about £150m to voluntary organisations to help them take on public service delivery contracts under the Labour government before the coalition closed it to new investment.
Social ventures that could benefit from "business capacity-building support" - such as short-term legal advice, governance restructuring or financial analysis - would be targeted, the Cabinet Office said.
The programme will be modelled on the Cabinet Office's pilot £10m Investment and Contract Readiness Fund, which was launched in 2011 and operated for three years. The government said social ventures generated £38 from other sources for every £1 of grant from the fund.