Applicants to the Community Shares Fund will receive a full due diligence on the viability of their share issues.
If we consider it to be viable, we will offer to make an investment of up to one third of the total community share offer (up to a maximum of £50,000).
There will be an arrangement fee of 2% of our investment (a minimum fee of £500). This will be payable whether or not the finance is required.
The shares purchased by the Community Shares Fund will incur a fee equivalent to 8% per annum of the outstanding balance. This is to deter applicants from using our investment as anything other than a back-up plan.
Money from the Community Shares Fund will be invested in a separate class of shares and will take priority over other shares. They will be eligible for withdrawal at any point within a reasonable period (usually within about 12 months). Depending on your society, this may require a rule change. This is a straightforward process, which we can offer advice and guidance on.