A new €25m Community LEADER Loan Fund to assist community based organisations participate in the new LEADER programme is being launched by Clann Credo, Ireland’s largest provider of finance for community based organisations.
The Fund, formally launched by Heather Humphreys, Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs, in Virginia, Co Cavan on Feb. 6th, will provide both matching and bridging loan facilities, specifically geared to the needs of rural groups and initiatives.
Uniquely it will require no personal guarantees from community organisations applying for loan facilities.
Speaking at the Launch, Minister Humphreys said that “Clann Credo has a strong track recording in providing loans under the previous LEADER programme, and indeed for many years before that. As the country’s largest provider of finance for community based organisations, Clann Credo supports community groups which focus on social return.
“Community-led development is central to my plans for the revitalisation of rural Ireland. This year, the LEADER programme will pump €40 million into rural communities, and this funding will be further leveraged with loans from Clann Credo, bringing additional benefits for rural communities.”
Clann Credo CEO, Paul O’Sullivan, said that the new loan product has been specifically developed and honed based on their experience during the outgoing LEADER programme, when Clann Credo supported over 300 rural communities that were often unable to obtain mainstream banking loans.
He said that “Clann Credo recognises that the commitment and contribution of community leaders and volunteers acts as its own collateral.
“We are therefore in a position to offer loans on that basis, without seeking the personal guarantee arrangements that are common in mainstream banking loans.”
Other major features of the new LEADER loan scheme include:
l No formal application form, the process is based on the original LEADER application
l Interest rates are fixed on loans up to five years
l Early repayment or extra payments options with no penalty - including for fixed rate loans
l Regionally based staff with expert local knowledge and experience who provide a one-to-one service in finalising the loan process with each community organisation
l In-depth advice and free financial health check provided for all applicants, based on Credo’s unequalled 20-year experience in community loan provision.
Clann Credo will be publicising the new loans widely over the coming months and will be working with local LEADER and community based organisations to ensure that the maximum benefits can be obtained from the overall LEADER programme. See also www.clanncredo.ie.