Loans

The diocese runs two loan schemes.

CCLA Diocesan Loan Scheme

The scheme is funded by a loan arrangement between CCLA (Churches, Charities and Local Authorities Investment Management Ltd) and dioceses. CCLA lends the funds to the diocese for onward lending to parishes and we pass the funds on at cost. The total CCLA loan fund for our diocese is £1m.

In order to ensure funds are available to as many parishes as possible, loans are generally made up to £50,000 (although for large scheme we have given larger loans) and the loan periods are normally 5 or 10 years. The interest is 0.55% above CCLA CBF deposit fund rate (currently 0.65%), so the current variable interest rate is 1.20% (2018). Interest is payable half yearly with the capital repaid in equal annual instalments in either May or November, depending on when the loan is taken out. Applications for loans are considered and approved by the DBF Finance Group which meets six times a year; applications need to be ready at least two weeks before the meeting.

In order to consider your application, we would need to see evidence that the PCC wished to apply for funding (an extract from PCC minutes, signed by the Secretary). We would also look at the current finances of the parish (latest accounts) together with your plans and costing for the project and a plan of how you would expect to meet the capital repayments as they fall due. The PCC will need to consider how they plan to find additional income from giving or fundraising to repay any loan.

If the loan is approved, we then ask the PCC to sign a loan agreement.

If you would like to make an application, contact Matthew Pinnock. He will discuss the best way to move forward on this. If you need additional help with grant funding or a planned giving review, you might like to contact the Stewardship team who may be able to signpost you to possible sources of funding or provide you with support/materials for a planned giving review.

The Diocesan Loan Fund

The fund was set up in 2014 to assist parishes with larger projects requiring a higher level of loan funds or where the CCLA scheme was fully committed. The start of the application process is the same as for CCLA loans but it is likely we would want to meet with you to understand your project and funding in more detail. At present the fund is fully committed.

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