Guarantee of Community Loans Policy
REM REFERENCE POLICY TYPE APPROVAL DATE ADOPTED DIRECTORATE POLICY OWNER NEXT REVIEW REVISION RECORD 23 September 2019
1.
A5745792 Council: adopted by Council resolution Council 20 April 2026 Corporate and Commercial Services Manager Financial and Integrated Planning April 2030 VERSION REVISION DESCRIPTION 1.0 Initial 2.0 Revised version
Purpose
This policy is intended to clarify the rules and methodology which Council will apply when considering whether it should act as bank guarantor for loans taken out by community organisations. Its objective is to provide a mechanism whereby Council may provide material (but not direct financial) support for local communities and sporting organisations to fund capital asset projects that will ultimately vest in or be controlled by Council and will provide measurable community benefit.
2.
Scope
This policy will apply to all Council and Council officers. This policy will also apply to community and sporting organisations within the municipality seeking Council to act as a guarantor on a loan secured to self-fund capital asset projects on land that is owned or controlled by Council. Council will not act as guarantor to loans for:
Individuals, businesses or any other entities or groups. The purchase of new equipment or facility maintenance.
Council will not directly lend money to Community groups or provide short term credit for contributions.