CLT Social Investment Fund
Mon 10 Aug 2015
CLT Social Investment Fund, which can help you fund different stages of your development needs
The fund is actively taking new applications and offers:
- Pre-development finance- an average loan of £40,000 to support CLTs whilst they work towards planning permission:
Interest rate: There is no interest rate but a 25% success fee is charged at the end of the loan period if the scheme successfully moves through to the development phase (if the scheme is not successful, the loan is converted to grant);
Repayment: The loan is repaid when planning permission is received and development finance is raised.
- Development finance - an average loan of £350,000 towards construction costs to de-risk commercial finance and enable the scheme to be completed. We provide the remainder of needed finance that is more difficult to raise (ranging from around 10% to 40% of the total amount needed) and take second charge on the properties:
Interest rate: The interest rate charged is initially 7.5%;
Repayment: The loan is repaid from the proceeds of the completed scheme.
More information is available on our CLT website www.cltfund.org.uk or contact Sandra at SHalilovic@cafonline.org if you'd like to learn more about the fund and process.
Of course CLT East is always here to help you through the process.
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