Low-interest loans

Loans

The AHF loan scheme is intended to assist registered charities by making short-term, low-interest loans for acquisition and/or working capital to repair historic buildings. The recipient must have, or acquire, title or a long lease for the historic building to be repaired.

Amount
Loans are usually subject to a ceiling of £500,000 with interest charged at 5% for working capital and 7% for acquisition.

Duration
The normal loan period is three years, or until the building is sold, whichever is earlier. The AHF will always consider allowing extra time, if this is requested before the loan falls due for payment, but the AHF does not offer long-term finance.

Security
Security can be offered in the form of a repayment guarantee from a bank, local authority or other acceptable institution, or as a first charge over any property (including that for which the loan is required) to which the borrower has a free and marketable title.

Development Loans

Development loans are available for any professional work required to take a project to the point of it being ready to go on site. The recipient must be able to demonstrate that the project is viable and able to attract funding.

Amount
Development loans are subject to a maximum ceiling of £50,000 with interest charged at 2.5% simple. Should a larger AHF working capital loan for the same project be contracted, the interest charged on the development loan will be waived.

Duration
A development loan will normally be for a period of up to eighteen months and will not be extended beyond its due date.

Security
A development loan must be secured by a repayment guarantee, preferably from a local authority.

This is only a summary; for more details please refer to Loans - Guide and Application Form and Development Loans - Guide and Application Form.

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