Interest-free loans for community buildings


The Co-op Foundation’s loan fund for community spaces offers interest-free loans of up to £50,000. The fund is intended to support ‘enterprising ideas for community spaces’, which means trading activities that will help your organisation increase its long-term income.

There’s more information on the Co-op Foundation’s website, along with a short guidance booklet (PDF). The booklet has some examples of what the Foundation are keen to support and you can email them to check whether your plans fit.

Be cautious about borrowing money, especially if your organisation is an unincorporated association / trust (like many village halls and some community associations). If an unincorporated charity borrows money and can’t pay it back, the charity trustees are liable to settle the outstanding debt from their own personal assets. This loan scheme is interest-free and repayments only start a year after you take on the loan, but trustees of unincorporated charities should still be aware of their potential liability.

Our website has more information about funding sources for community buildings, here.