Loan Finance
It may be worth considering taking out loans to enable work to proceed in one continuous operation, whilst fundraising is going on but weigh the implications carefully. Obviously this will be dependent on the ability of the parish to cope with the burden of repayment. The important principle is to ensure that the parish have the financial ability to meet their commitments.
Once the project work has been paid for by means of a loan, much of the impetus for fundraising will have been lost and it will not be easy to win support to pay off the loan, not to mention the interest. This could result in a parish becoming saddled with a debt over a long period. It is wise therefore to maintain the momentum of the appeal and to keep the use of loans to a minimum. It is also worth remembering that many grant-giving agencies (including English Heritage and the Heritage Lottery Fund) will not grant aid work that has already been started, whatever the financial circumstances of the congregation.
DIOCESAN LOANS
Many Diocesan Boards of Finance offer loans in respect of repairs to church fabric, reordering or for new buildings. You should approach your Diocesan Office to see whether they offer such a facility.
Charity Banking
Some banks can accept deposits that earn social as well as financial returns and offer affordable loans for charitable purposes. The notes below identify and give contact details for some of these organisations, with their stated objectives. Please satisfy yourself before you enter into agreements with any such organisation: the details below give are given in good faith, but Churchcare cannot take responsibility for their accuracy.
CCLA Investment Management Limited
Client Service
80 Cheapside
London EC2V 6DZ
Tel 020 7489 6010
Fax 020 7489 6126
www.ccla.co.uk
CCLA (formerly known as Church, Charity and Local Authority Fund Managers Limited) describes itself as a leading specialist investment management company offering Church of England charitable trusts, charities in England and Wales and local authorities the best and most suitable ways of investing their money through the charitable funds that it manages.
The Charity Bank
194 High Street,
Tonbridge,
Kent TN9 1BE
Tel 01732 774040
Fax 01732 774069
Email enquiries@charitybank.org
www.charitybank.org
The Charity Bank is the only not-for-profit bank in the UK. It describes its mission as transforming the future of charities, helping them take decisions out of the hands of their funders by providing them with the financial and business support they need to become efficient, independent players. It uses 100% of the money of its savers for charitable purposes, creating a pool of funds which is used to make loans to charities, voluntary groups and social enterprises which are offering vital services to the most vulnerable in society, or creating jobs and income across the UK. Using these funds, Charity Bank provides guidance and where appropriate, loan finance on affordable terms, on amounts up to £1 million.
Co-op Bank
Customer Service
PO Box 200
Delf House
Southway
Skelmersdale
Lancs WN8 6GH
Tel 08457 212 212
The Co-op Bank says that it offers full banking services while adhering to a strong ethical policy.
Co-operative & Community Finance
Head Office
Brunswick Court
Brunswick Square
Bristol
BS2 8PE
Tel 0117 916 6750
Fax 0117 916 6751
Email icof@co-opandcommunityfinance.coop
www.co-opandcommunityfinance.coop
Co-operative and Community Finance has existed as a revolving loan fund since 1973. They describe their primary purpose as being to help more people take control of their economic lives through the provision of loan finance and business advice.
Future Builders
www.futurebuilders-england.org.uk
Futurebuilders England is a unique government-backed fund offering support and investment to third sector organisations to deliver public services. They aim to offer a combination of loans, grants and professional support to build the capacity of third sector organisations who want to deliver better public services.
Kingdom Bank Ltd.
Ruddington Fields Business Park
Mere Way
Ruddington
Nottingham
NG11 6JS
Tel 0115 921 7250
Email info@churchmortgagesdirect.co.uk
Kingdom Bank is a UK-based independent Christian bank with a 50-year heritage, providing a range of financial services to suit individuals as well as charities, businesses, associations and trusts. The company describes itself as being ethical by nature, dedicating its entire mortgage and lending capacity to provide funds to build and develop churches and Christian ministries within the UK.
Methodist Chapel Aid
1 Telford Terrace
Albemarle Road
York YO24 1DQ
Tel 01904 622150
Fax 01904 627727
Email mcaa@methodistchapel.co.uk
For over 117 years Methodist Chapel Aid Ltd has made loans to Trustees at the lowest practicable rates of interest as well as providing a secure home for savings. They are able to work with all Christian churches. The range of assistance is provided by means of loans, for example:
- from wheelchair access to a new building
- bridging loans for manse purchase
- the amount can be large (up to £523,400) or small
The Rural Community Buildings Loan Fund
The contract to manage the Loan Fund, funded by the Countryside Agency, was won by ACRE (Action with Communities in Rural England). It originated in the 1930s as one of the principal sources of funding for building new halls contributing significantly to the growth in village halls at that time. Previously known as the Village Hall Loan Fund, it was relaunched on 1st April 2009, as the Rural Community Buildings Loan Fund which means it is now open to all rural community buildings which includes churches, chapels, church halls as long as the community building is providing or intending to provide improved services for the wider community. Any community building that needs to carry out capital works to its building which is due to a temporary gap in funding, a specific project (including new build) or emergency work, is eligible to apply for a loan. The loan fund aims to be as flexible as possible and tries to accommodate all reasonable requests within its criteria.
It operates a flexible repayment scheme and has a total budget of £700,000. Applications can be made at anytime.
Revised guidelines and the application form to reflect the wider eligibility are still being finalised (and we are being consulted to ensure that churches and chapels are not inadvertently excluded), and will be up on the website soon. In the meantime applications can still be made. Go to: http://www.acre.org.uk/communityassets_villagehalls_loanfund.html
Triodos Bank
Brunel House
11 The Promenade
Bristol BS8 3NN
Tel 0117 973 9339
Fax 0117 973 9303
Email mail@triodos.co.uk
Triodos says that it offers a comprehensive range of banking services for social businesses, charities and groups along with a variety of savings accounts for individuals. Triodos Bank states that it only lends money to organisations and businesses pursuing positive social, environmental and cultural goals.
Unity Trust Bank
Head Office/Customer Service
Nine Brindleyplace
Birmingham B1 2HB
Tel 0845 140 1000
Email utb@unity.co.uk
www.unity.uk.com
Unity Trust Bank describes itself as a socially responsible and innovative bank, committed to working in partnership with all their stakeholders, delivering high quality services and reinvesting in the wider community. They have recently launched a new £50m Social Economy Fund to provide loan finance for the voluntary and community sector.
LOANS FROM INDIVIDUALS
Some individuals may wish to make a loan to the appeal. This may be for part or the whole of a specific project. Their contribution to the appeal may be in the loss of interest that they incur. The Diocesan Registrar will usually be pleased to draw up any contract needed.
March 2003, November & December 2007, January 2008
