If all funding and grant opportunities have been used up then you may consider applying for a loan to finance refurbishment or development work. This might be particularly appropriate as a means of bridging finance where builders have to be paid as the work is done but where funders are only prepared to pay on completion. Obviously one needs to be careful about taking on loans.
- Your trust deed should be checked to ensure that you are allowed (or more likely specifically disallowed) to borrow
- You need to be absolutely certain .that repayments can be made from incoming finance
- You must be aware that trustees may become personally liable in the event of loans not being repaid
If borrowing is right for your hall then the Rural Community Building Loan Fund might be the best source of help but there is usually a high demand for its funds so it is ot always open to applications.
Here is more information from the ACRE website about the fund ...
ACRE manages the rural community buildings loan fund on behalf of Defra. The rural community buildings loan fund aims to provide assistance with:
- Provision of a new building either to replace an existing one or provide one
where none exists - Extending, renovating and converting an existing building
- Upgrading a building to meet fire standards, building regulations, security
needs and similar legislative requirements - Improving accessibility and making other similar changes that will enable
new uses and services - To support measures that increase energy efficiency
Village hall advisers are required to assess projects before they are submitted to ACRE for approval. The following points have to be taken into account:
- Loans of up to £20,000 are usually available. Larger loans can be considered
particularly where needed as bridging finance. - The loan should be for a freehold or leasehold property, with a minimum of
21 years left on the agreement. Alternative arrangements can be considered provided
security of tenure can be clearly demonstrated. - Local funds for the project should be available to contribute at least 10% of the
overall project costs. - Loans do not have to be secured or guaranteed.
- The loan repayment, together with interest, can be repaid within either 5 or 8 years.
- There are no penalties for early repayment of grant; additional payments are
welcomed by ACRE.