Friday 20th July 2012
Levy Board Reintroduces Loans for 2013
The Levy Board has announced the reintroduction of loans to racecourses and others for 2013.
No new loans have been approved since the end of 2009 but, with the Board’s financial position more stable, the Board has been able to restart a process of inviting loan applications.
The total amount available for 2013 will be confirmed later in 2012, but will not exceed £10m.
The Board has agreed an order of priorities for lending as follows:
a. Capital improvements needed as a result of BHA/legal requirements
b. Non revenue generating loans for horse specific projects e.g. turf, drainage, stabling
c. Revenue generating loans
d. Loans to parties other than racecourses for the improvement of horseracing or other Levy Board responsibility
e. Racecourse loans for non horse specific projects
The Board has now decided to charge interest on loans, rather than, as in the past, making loans interest-free. This will help to ensure sums remain available for future loan processes.
Outline applications will be invited by 24th August 2012, with the Board taking final decisions at its December 2012 meeting.
Levy Board Chief Executive Douglas Erskine-Crum said: “We are very pleased to be able to reintroduce lending to racecourses and others, a Levy Board initiative which over several decades has been of assistance in the development of many capital projects.”
Outline Lending Process for 2013
1. The Levy Board has approved the reintroduction of loans. The precise figure available will be confirmed later in 2012 but will not exceed a total of £10m for 2013.
2. The Board’s order of priorities for lending will be:
a. Capital improvements needed as a result of BHA/legal requirements
b. Non revenue generating loans for horse specific projects e.g. turf, drainage, stabling
c. Revenue generating loans
d. Loans to parties other than racecourses for the improvement of horseracing or other Levy Board responsibility
e. Racecourse loans for non horse specific projects
3. The Board will charge legal and professional fees to applicants as incurred.
4. Loans approved for 2013 will be made at a rate of interest to be confirmed.
5. For loans of £200,000 or less, an applicant is not required to provide documentation to the same extent as for higher value projects.
6. The maximum loan as a proportion of the project cost will be 75%.
7. The maximum loan per project will be the higher of £1.5m and 20% of the total funds available in 2013.
8. The minimum loan will be £50,000.
9. The standard repayment term for a loan will be four years.
10. An applicant is required to indicate formally when it seeks to draw down approved loans and the amounts per drawdown.
Applicants are invited to forward applications in outline only (without the need for a full business plan, financial statements and detailed architectural plans, but including an outline of the project with timescale, the amount sought and repayment plans) by 24th August 2012.
By mid September 2012, applicants will be advised of the prospect of the project getting funding, confirming strong likelihood to selected applicants who will be asked to provide worked up proposals.
Full applications will then be required by 19th October 2012. Applications will be taken by the Levy Board at its meeting on 11th December 2012.
No new loans have been approved since the end of 2009 but, with the Board’s financial position more stable, the Board has been able to restart a process of inviting loan applications.
The total amount available for 2013 will be confirmed later in 2012, but will not exceed £10m.
The Board has agreed an order of priorities for lending as follows:
a. Capital improvements needed as a result of BHA/legal requirements
b. Non revenue generating loans for horse specific projects e.g. turf, drainage, stabling
c. Revenue generating loans
d. Loans to parties other than racecourses for the improvement of horseracing or other Levy Board responsibility
e. Racecourse loans for non horse specific projects
The Board has now decided to charge interest on loans, rather than, as in the past, making loans interest-free. This will help to ensure sums remain available for future loan processes.
Outline applications will be invited by 24th August 2012, with the Board taking final decisions at its December 2012 meeting.
Levy Board Chief Executive Douglas Erskine-Crum said: “We are very pleased to be able to reintroduce lending to racecourses and others, a Levy Board initiative which over several decades has been of assistance in the development of many capital projects.”
Outline Lending Process for 2013
1. The Levy Board has approved the reintroduction of loans. The precise figure available will be confirmed later in 2012 but will not exceed a total of £10m for 2013.
2. The Board’s order of priorities for lending will be:
a. Capital improvements needed as a result of BHA/legal requirements
b. Non revenue generating loans for horse specific projects e.g. turf, drainage, stabling
c. Revenue generating loans
d. Loans to parties other than racecourses for the improvement of horseracing or other Levy Board responsibility
e. Racecourse loans for non horse specific projects
3. The Board will charge legal and professional fees to applicants as incurred.
4. Loans approved for 2013 will be made at a rate of interest to be confirmed.
5. For loans of £200,000 or less, an applicant is not required to provide documentation to the same extent as for higher value projects.
6. The maximum loan as a proportion of the project cost will be 75%.
7. The maximum loan per project will be the higher of £1.5m and 20% of the total funds available in 2013.
8. The minimum loan will be £50,000.
9. The standard repayment term for a loan will be four years.
10. An applicant is required to indicate formally when it seeks to draw down approved loans and the amounts per drawdown.
Applicants are invited to forward applications in outline only (without the need for a full business plan, financial statements and detailed architectural plans, but including an outline of the project with timescale, the amount sought and repayment plans) by 24th August 2012.
By mid September 2012, applicants will be advised of the prospect of the project getting funding, confirming strong likelihood to selected applicants who will be asked to provide worked up proposals.
Full applications will then be required by 19th October 2012. Applications will be taken by the Levy Board at its meeting on 11th December 2012.