Plunkett adviser Alan Collard explores and explains the Public Works Loan Board, which gives town and parish councils (in England) and town and community councils (in Wales), the ability to borrow large sums, for long periods, at historically low and fixed interest rates.
“This will be attractive to many towns and villages”
Another source of capital for community enterprises
If you are thinking of starting or expanding a community business, one of your key challenges will be where to find the finance to do so.
Many community businesses are able to access grant funding and many also use their ability (if a community benefit society) to raise capital via a community share issue.
And now, we have another increasingly attractive option: the ability of town and parish councils (in England) and town and community councils (in Wales), to borrow large sums, for long periods, at historically low and fixed interest rates.
This can be achieved through the PWLB Lending Facility.
On the 3rd June, by way of example, the fixed interest rate for a 50-year loan from the Facility was just 2.71% per annum; this will be attractive to many towns and villages.
Parish and town councils can use the finance raised in this way for capital projects, either by extending grants to bona fide community organisations or buying or establishing businesses themselves, for the benefit of their communities.
Plunkett hosted a well-attended webinar to showcase PWLB funding possibilities in late April. Following on from this we are pleased to be able to provide a package of information to help you navigate the process for accessing the Facility.
