£50m of loan funding available to Scottish charities to buy property

Finance | Niki May Young | 8 Dec 2011

The Scottish Council for Voluntary Organisations (SCVO) has teamed up with the Unity Trust Bank to offer Scottish charities the chance to build third sector business centres.

Loans of between £250,000 and £5m are available from a total fund of £50m to SCVO members wishing to own sole or joint properties with other SCVO members.

The scheme was born from the success of SCVO's Brunswick House charity hub in Glasgow's Merchant City, which has seen great demand, according to John Ferguson, director of development and programmes at SCVO: "Following the success of SCVO's Brunswick House... the new scheme will allow more third sector organisations to focus on what they do best - delivering vital services to the people of Scotland - safe in the knowledge that they are building assets and operating in an efficient, cost-effective way," he said.

Owning of premises can help charities control costs and ensure sustainability, at the same time as providing tailored office space and facilities and promoting the professional platform of the sector, say SCVO.

It also has backing from Scotland's cabinet Secretary for finance and sustainable growth, John Swinney: "We welcome this initiative by SCVO and Unity Trust Bank which will build on our support, helping to improve the capability of individual third sector organisations in delivering high quality public services and enhancing the sector's economic contribution."

The scheme opened to expressions of interest today and will formally launch at one of Scotland's biggest events for the charity sector, The Gathering, which takes place on 28 February - 1 March next year.

Loans will be available for new-build properties or the substantial refurbishment of existing properties. Rates are negotiable but are typically in the range of base rate +2.25 per cent - base rate +3.0 per cent with a minimum rate of 4 per cent. Fixed rates may also be available for terms of up to five years, but the typical repayment period will be between 10 - 30 years.

Directory: SCVO

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