In the face of a challenging financial climate the Bridge and Build Loan scheme is helping voluntary organisation in Wales to restructure or change how they operate.
The current financial pressures on voluntary organisations in Wales are clear, with costs soaring and resources stretching thin.
We know that many organisations are having to make difficult decisions about how they run in order to cope. Our Social Investment Cymru team has been drawing up plans to help organisations manage these challenges.
Our Bridge and Build Loans will support organisations that are adapting their business model to fit their new circumstances and those that are scaling back.
LOANS AREN’T RIGHT FOR EVERYONE
These loans are designed for trading voluntary organisations or those developing their trading offer.
A loan will not be appropriate for everyone, but in the right circumstances affordable borrowing can make the difference. These loans will support organisations through their period of transition and can then be repaid from a position of strength in the future.
WHAT IS AVAILABLE?
Bridging loans – Up to £150,000 to bridge the gap when a property is being sold to reduce costs or as part of a restructure. The loan will be repaid from the sale of the property.
Build loans – Up to £100,000 to support cash flow while trading or operating models are being changed. The loan will be repaid once the more profitable operating approach is in place.
3.5% interest for first year, 7% for year two.
WHAT WE’LL FUND
Some examples of what we’ll fund:
- Selling a property where you need time to do that or costs covered during that time, including redundancy costs
- Bridging financial gaps while restructuring
- Introducing a new trading model which might need capacity building before it becomes profitable
WHO IS THIS FOR?
Eligible organisations will be:
- A trading voluntary organisations or one that’s developing its trading offer
- A suitably constituted organisation with a qualifying governance structure
- Based in Wales
You will be required to have an independent review of your financial projections as part of the application process, a grant will be available to cover the costs of this.
HOW TO APPLY
There are more details on the Bridge and Build Loans coming soon. In the meantime please contact our Social Investment Cymru team if you are interested in applying: sic@wcva.cymru or 0300 111 0124.
The process begins with completion of an eligibility questionnaire. In order to complete this you will need to register with WCVA’s Multipurpose Application Portal (MAP). If you have previously registered with MAP, you can log in by entering your username and password on the home screen.
Organisations can register by visiting the website: map.wcva.cymru.