Loans made to Racing
HBLB has updated its loans policy with effect from 1 February 2022 for all future loan application windows. The changes to terms and conditions provide significant improvements for loan recipients.
Currently there is no active loan application window open. This guidance page will be updated when a window opens.
Outline lending process
1) The Board’s priorities for lending are, in order:
a) Capital improvements needed as a result of BHA/legal requirements
b) Non-revenue generating loans for horse specific projects e.g. turf, drainage, stabling etc.
c) Revenue generating loans
d) Loans to parties other than racecourses for the improvement of horseracing or other HBLB responsibility
e) Racecourse loans for non-horse specific projects
2) Where a fee is required for external professional fees HBLB will no longer charge a flat fee of 1.5% of the loan value but will charge for costs incurred up to a maximum of 1.5% of the loan value.
3) The term of any approved loan will now be flexible. This was previously a standard four-year term but HBLB will now consider a term of up to 10 years and within this limit the term can be suggested by the applicant for HBLB to consider.
4) Loans will incur an annual interest charge of 2%. This has been reduced from the previous interest charge of 4% p.a.
5) The minimum loan granted will be £50,000.
6) The maximum loan granted per project will be considered on an individual basis but may be limited if a large number of applications are received by HBLB. This is to ensure that the monies are allocated as fairly as possible. In deciding how much to lend to an applicant in any loan window, the Board will take into account any already-existing loans and whilst remaining flexible will endeavour to keep a ceiling of £1m per applicant in outstanding loans.
7) All loans are subject to a detailed assessment of the applicant’s financial circumstances and adequate security being provided. For loans of over £200,000 it is HBLB’s policy to take first-ranking security.
8) Large projects will be subject to review by HBLB's external property and financial consultants so as to ascertain to the Board’s satisfaction that they are both realistic and achievable.
9) The maximum loan granted, as a proportion of the total project cost, will be 75%.