Capital Loans for 2018

The Levy Board is inviting applications for loans in 2018 and set out below is a summary of the application and assessment process.

If you would like to be considered for a loan in 2018, please provide to HBLB by no later than Monday 19th March 2018 a brief description of your proposed project, in outline only, and include an indication of the category into which you consider it falls (see paragraph 1 below), the likely development timescale and the amount sought. There is no need to provide full plans or detailed financial projections at this stage. You are asked please to email the information to HBLB’s Finance Director, David McCormick, on david.mccormick@hblb.org.uk.  If you have any questions, please call him on 020 7333 0043 or 07876 395963.

Outline lending process for 2018

(1) The total amount that the Levy Board will be making available for loans will be confirmed in spring 2018 but this is not expected to be less than £5m. 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) For all loans, the Board will charge an arrangement fee of 1.5% of the total loan value and the rate of interest charged on outstanding amounts will be 4% per annum.

(3) The repayment term for any loan will be four years. In the event that HBLB is abolished before the end of the loan term, it is expected that the Racing Authority will assume responsibility for management of the loan on the same terms.

(4) The minimum loan granted will be £50,000.

(5) 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 and not lent to only one or two racecourses for larger projects. Furthermore, all loans are subject to a detailed assessment of the applicant’s financial circumstances and adequate security being provided.

(6) Large projects will be subject to review by HBLB's external cost consultants so as to ascertain to the Board’s satisfaction that they are both realistic and achievable.

(7) The maximum loan granted, as a proportion of the total project cost, will be 75%.

(8) By Thursday 29th March 2018, you will be advised of the prospect of your project receiving funding and, if selected, you will be asked to submit a detailed application.

(9) Detailed  applications  will  be  required  by  Monday 30th April 2018,  although  for  loans of £200,000 or less, a racecourse will not be required to provide documentation to the same extent as for higher value projects.

(10) Detailed applications will be considered by the Levy Board’s Investment Committee during May/June 2018, with final approval or otherwise being given by the Levy Board at its meeting on Wednesday 13th June 2018.

As a general rule HBLB will only consider loan requests based on the timetable outlined above. However, should a racecourse identify an urgent mid-year requirement for loan funding, consideration will be given to such a request on the condition that it falls under either Category (a) or (b) (see paragraph 1) and is de minimis in value.

Capital Credit Scheme

The Capital Credit Scheme enables racecourses to accrue all or part of their grant payments from the Levy Board which can then be drawn down by racecourses for future use to support capital projects, including meeting their loan repayments.

The principles as to which projects are eligible for Capital Credit use are the same as for racecourse loans. The agreed criteria of the Board’s priorities in assessing applications are:

a) capital improvements needed as a result of British Horseracing Authority/legal requirements;
b) non-revenue-generating loans for horse specific projects e.g. turf, drainage, stabling;
c) revenue generating projects;
d) non-horse specific projects.

All authorised users of HBLB's Racecourse System can download a Capital Credit Scheme guidance note and Capital Credit project application template on the 'Other Information' tab of the Racecourse System's dashboard.