The Diocese is able to make interest-bearing loans to parishes.
Below are the current terms and criteria for loans:
• Loans are usually for between £20,000 and £200,000
• Repayment is over 5 years or less
• An interest rate of variable base rate +2% to be normally applied,
however a higher rate may be applied for loan with a higher risk profile.
• Priority will be given to applications
– where the Diocesan element of the overall funding is low relative to the overall funding requirement;
– for urgent building work especially if related to health and safety issues;
– for short term financing, such as bridging loans;
– to projects that will make a financial profit or at least break-even;
• There must be clear evidence and commitment that the parish can and will continue to meet its current and future common fund obligations during the loan repayment period.
• All applications need the support of the relevant Archdeacon.
If you wish to apply for a diocesan loan please consult your Finance Adviser at an early stage. They will be able to assist with the process and also supply details of the current deadlines for submission of applications. Loan applications are generally considered at meetings of the Loans Monitoring Group which meets four times a year.
