Since you will be entering into a legally binding agreement you must check that the Group's constitution or Company's Memorandum and Articles of Association allow it to borrow money.

There must then be a full discussion within the management committee, Board of Directors or equivalent body.

Note:

If you decide to apply for a loan you will then have to show that:

• the purpose for which a loan is required will lead to a significant social benefit
• you have been unable to obtain all, or at least part of, the money being sought from a commercial lender
• the agreed repayments will be made on time
• the activity resulting from the loan is likely to continue for at least the duration of the loan

Step Two

You must provide the Fund Administrator with:

• a completed application form that sets out the purpose for which the loan is required and the amount and the repayment terms you prefer
• either a) a copy of the group's constitution which must require that any surpluses generated by the activity funded by the loan be used for community activities in keeping with the group's objectives or b) a copy of the letter from the Inland Revenue recognising the group's charitable status or (if based in England & Wales) confirming the Charity Registration number 
• details of the group's office bearers and management committee
• the projected income and expenditure for the proposed period of the loan
• details of how the revenues necessary to repay the loan will be obtained

 

Note: if requested, free assistance will be provided with the preparation of all or any of the above