Loan funding

Our loans are offered at a 6% fixed interest rate and we never ask trustees or senior management to provide personal guarantees. We expect loans to be repaid through income or fees from public sector bodies, such as primary care trusts or local authorities.

Key facts about our loans:

  • Loan funding will usually be the largest part of every investment we make
  • The minimum loan is £30,000 (within a minimum investment package of £50,000)
  • The loan period will usually be a minimum of 12 months and will vary in length according to circumstance. Some of our loans on building projects are as long as 26 years
  • Our interest rate is fixed at 6% for the first three years
  • Loans will usually cover either capital asset costs (for example building purchase, construction or refurbishment) or development capital (the money needed to support an organisation through the early stages of a scheme, before it can generate income)
  • We will not impose penalties for early repayment
  • We will not hold trustees personally liable for loans (unless they have acted recklessly or imprudently. This would be the case with any funds they are entrusted to manage, including grants or public donations).
  • We will not require trustees to provide personal guarantees.
  • We can make a performance-related or quasi-equity investment where the timing of repayments, and perhaps even the amount to be repaid, will depend on the success of the scheme we invest in.
  • We might also agree to guarantee/underwrite a commercial loan.
  • We are willing to make loans in a manner that is consistent with all faiths. We will work with potential investees to ensure that we share both the risks and rewards of transactions, in a manner acceptable to their faith.

Concerned about taking on a loan?

We understand that loan funding is new to many organisations, but it has real advantages.

If you have any concerns, why not talk to us directly? Our friendly staff are available to talk to you on weekdays between 10:00am and 4:00pm (10:00 am to 12 noon only on Thursdays).

Enquiries line: 0191 261 5200

Enquiries email: [email protected].