Bridge Financing Policy Going To CouncilMarch 20, 2017 6:12am
Not-for-profit community organizations might have a few more hoops to jump through pending the approval of a new municipal lending policy in Chatham-Kent.
Administration will be bringing a report to council regarding bridge financing.
The policy is being recommended after the municipality saw an increase in the number of organizations asking for “bridge financing” loans.
Councillor Derek Robertson asked for municipal staff to come back to council with a policy — something many other councillors agreed with at the council meeting on February 13, 2017.
The policy sets a criteria that local groups must meet in order to be considered for a loan.
Some of the objectives listed state that an organization must “enter into a loan agreement with the Municipality” and have 75% of their funding — or at least a firm commitment — before receiving funds.
The policy also states that bridge loans will carry a minimum rate interest charge, which would mean no more interest-free loans like the one that was approved for the Blenheim Senior Centre.
In addition to repayment options, the terms will not be longer than five years.
The policy will go before council Monday night for approval.