SCVO Loan Scheme

Unity and SCVO loan scheme - thumbnail

 

We have partnered with SCVO to design a loan scheme specifically tailored to the needs of third sector organisations who wish to invest in their building infrastructure - whether you want to extend an existing building or invest in a new build. Loans are available between £250,000 and £4m.

The loan scheme has been created not only to help third sector organisations achieve their goals as an organisation but also to motivate charities to work together to cut costs and to share services, resources and expertise.

 

Is it for you? 

Purpose To assist charities, voluntary organisations, social enterprises and community associations to acquire, develop and/or refurbish their premises from which to deliver enhanced services towards the common good.
Borrower Third sector organisations
Amounts £250,000 to £4.0m.
Loan-to-value Normally up to 70% of the professional valuation of the property. A loan of up to 100% will be considered where the applicant(s) have additional security available. Where the applicant’s contribution is made up of other external funding, this should be acceptable to the Bank and rank after Unity for repayment. The Bank will need to entirely satisfied with the applicant’s ability to repay.    
Term Up to 25 years 
Interest Margin Variable Negotiable but typically Base** +2.25% (minimum 4% p.a.).
Fixed Available for up to five years.
Fees A 1% arrangement fee will be payable on acceptance of any loan offer. Non utilisation fees of any agreed facility up to 0.5% may be charged where there is an extended period between offer and drawdown.  The borrower will pay professional fees incurred by Unity which typically include valuers and solicitors, and a quote will be provided at the time of application. The borrower will be responsible for their own professional costs.
Security A First legal charge over the development site/property. The land or premises can be freehold or leasehold. If leasehold, it must have more than 35 years unexpired upon repayment of the term facility. For Development Loans the Bank will require assignment over collateral warranties and compliance with the standard terms suitable for such a facility (ie. drawdown against work in progress certification).
Financial Covenants Following completion of the building works we would expect retained surplus + interest + depreciation (+ tax) to cover loan interest and repayments by at least 100%. We would also expect rent roll to cover loan interest and repayments by at least 120%.
Requirements We would normally expect Unity Trust Bank to provide the main bank relationship to the organisation.

** Base = Bank of England Base Rate.

Interested?

If you believe your organisation could benefit, then simply: