Subsidy Scheme

 

• Fair4All Finance has secured additional funding to extend our No Interest Loans and Consolidation Lending pilots to support people in financially vulnerable circumstances impacted by the cost of living crisis who don’t have access to mainstream lending

 

• We intend to allocate £30m to lenders across the two propositions, with the potential to significantly extend (up to £60m) as further funds are available

 

• Through our pilot activity we have proven that an innovative approach to the use of funding significantly increases lending and maximises the impact

 

• Fair4All Finance has seen that such lending
  • immediately improves the financial wellbeing of customers has a positive societal impact (eg helping people get back to work, improving mental health)
  • has positive outcomes for lenders as customers go on to take out other products

 

• Fair4All Finance has launched a Subsidy Scheme under the Subsidy Control Regime  through which it will make funding available to lending and associated services providers to extend the provision of no interest loans and consolidation loans to people in financially vulnerable circumstances who don’t have access to mainstream lending

 

• Fair4All Finance wishes to partner with organisations which can test, learn and iterate with us in order to build a sustainable long term solution for this customer group where lenders maintain an ongoing relationship with customers for these and other products

 

• Fair4All Finance will from time to time issue a brief outlining the outcomes that are sought. Applicants will submit proposals in response to the brief, by the specified deadline, outlining their solution, its scale, and the level and specific purpose/nature of funding they require

 

• Proposals will be evaluated by Fair4All Finance to understand the extent to which they deliver the desired outcomes and represent value for the funding requested

 

• Successful applicants will enter into a formal contractual agreement with Fair4All Finance, which will detail the financial support provided through the subsidy regime. The nature of costs that may be covered under the scheme could be broad so that potential solutions to the policy objective are not restricted. For example, value capped marginal bad debt, set up costs, third party costs, lending capital at or below market rates, however all will be restricted to the specific lending and associated activity for those in financially vulnerable circumstances and the financially excluded, described in the beneficiaries’ solutions

 

• Organisations interested in participating in the process to secure funding under this scheme are invited to contact us at hello@fair4allfinance.org.uk for a copy of the current brief or of course to answer any questions