Can we create our own documents for a trustee appointment? (Anonymous post 🤫)
Ocean King
Leadership & Governance
Can a CIC give loans to other companies?
Anna Bodicoat Company Director at Coastal Circus/British Juggling Community Interest Company Posted 2 years ago
Hi all,
We are looking at setting up a CIC to support the running of a yearly small festival.
Currently that festival is run each year by a different team of volunteers in different areas of the country. What has happened for a number of years is that there is a small loan passed on from one company to the next to help pay for deposits before ticket sales begin.
Part of the reason to set up the CIC is to support and formalise that process.
I can't find clear guidance on whether a CIC is allowed to loan money to ltd companies. It looks like it is possible to me as I found a CIC who provides credit to people who'd struggle to get it otherwise.
The companies we would loan to will not be CICs, nor will they be our asset locked bodies. They will be in benefit of the community the CIC is set up to serve (the juggling community in the UK)
The loans aren't a way of making profit, there'd be no interest charged.
Side note: can we give grants as a CIC?
Hope that makes sense, would really appreciate any advice from accountants or anyone who has done similar.
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