Fundraising Bridging Loan

Building projects are often delayed whilst charity and voluntary organisations complete their long-term fundraising programmes. The Fundraising Bridging Loan enables building work to commence with loan repayments being made as your fundraising income is received. If there is a shortfall at the end of your fundraising programme, this is converted into a term loan repayable over a time period to suit your organisation.

Purpose Assist property acquisition, development or refurbishment. This facility will bridge the difference between the amount of funds raised to date and the total cost of the project, enabling the applicant to commence the project at an earlier stage.
Borrower Registered charities, umbrella organisations, Development Trusts, Registered Social Landlords, churches and other faith-based groups.
Amounts Normally £0.25m to £4.0m.
Loan to value Max 85%.
Term Max: 3 years (Typically 2 years).
Interest Margin Variable Typical margin Base** +1.5% to Base +3% (minimum 4% p.a.).
Fixed N/A.
Capital Repayment Holiday Typically this facility is offered on an interest only basis. Interest roll up may also be considered.
Fees Typically 1.5% of the amount of the advance. NOTE - All legal and valuation fees to be borne by the applicant.
Security Development - first legal charge over development site. The land can be freehold or leasehold. If leasehold, it must have more than 35 years unexpired upon repayment of the term facility. Normal conditions relating to development finance will apply. Refurbishment/acquisition - usually a first legal charge over the freehold or leasehold property. Where the property is leasehold, it must have more than 35 years unexpired upon repayment of the facility.
Financial Covenants N/A - on demand facility.
Requirements Applicants to prove their fundraising ability. If development/refurbishment - staged drawdown against work in progress certification. We would normally expect Unity Trust Bank to provide main bank relationship.

** Base = Bank of England Base Rate.


For more information on our Fundraising Bridging Loan simply: