Support beyond grant making
The WEL Energy Trust has established a fund for community loans as one of its options to assist organisations to be more sustainable in the future and to assist events and/or projects to occur earlier and with increased surety than possible otherwise. By ‘recycling’ the Trust’s funds and supporting organisations to become more self-sustaining this will have the effect of reducing the demand on the community grants pool. The aim of the community loans is to provide a flexible option for organisations, particularly when undertaking larger capital projects.
The loan fund has been set up for three key reasons:
Enable significant viable community projects to proceed sooner.
Enable community organisations to purchase an asset.
Assist eligible organisations to purchase an income generating business (social enterprise).
The minimum for any one loan is $50,000 and the maximum is $500,000. Details of criteria and the application process will soon be found on the Trust's website.
The organisation and the purpose must meet the Trust’s current grant funding criteria and must be incorporated legal entities.
The project must fit with the Trust’s current strategic direction.
The beneficiaries of the loan, both the recipients and any people standing to benefit from the project being funded must be located within the Trust’s region.
Loans will primarily be considered for capital expenditure.
The project must have significant benefit to the overall region (and specifically those living in the WEL Energy Trust region) or to a sizeable group within the WEL Energy Trust region.
Applicants must meet all external party due diligence requirements and provide approved security for the loan. Applicants may be required to meet costs associated with this.
The WEL Energy Trust has established a fund for community loans as one of its options to assist organisations to be more sustainable in the future and to assist events and/or projects to occur earlier and with increased surety than possible otherwise.
Some points to note:
The Minimum for any one loan is $50,000 and the maximum is $500,000.
The interest rate is at the Trust’s discretion, from zero to current bank base rates.
The maximum term of the loan is for ten years.
The Trust will require security on all loan amounts.
Community Investment Strategy