I have never been a fan of "loans to charity" and have concerns for the ever growing "social investment and lending sector" , because most small to medium charity projects are not in anyway in control of guaranteed sustainable core ongoing funding to guarantee repaying debt. However many have gone down that route and raising working and project capital. I suspect in the future many will default which will be another potential charity scandal territory
For those that didnt know the rules for CIBLS have changed
- underwrite 100% of loans, as has been done with the bounce back loans scheme for small businesses
- cap interest rates for charities when the initial 12-month interest free period is over
- publish separate guidance for charities on whether loans are a suitable method of finance, and if they are eligible to use the scheme.
- reconsider whether the retail, hospitality and leisure grant fund should be regarded as state aid, on the basis that the beneficiaries of the funding are unlikely to distort competition between traders in European Union member states. This would not only benefit charities but would also support struggling high streets
- expand the definition of eligible retail, hospitality and leisure properties to include community buildings that are required to close during the lockdown such as community centres.
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