Issue - meetings

Report No:   CAB/SE/14/011

Cabinet Member: David Ray           Lead Officer: Liz Watts

RESOLVED:

That a further £25,000 be loaned to Samaritans (bringing the total secured loan to £175,000) subject to the appropriate level of due diligence being undertaken by the Chief Finance Officer as already agreed by full Council on 23 September 2014.

The Cabinet considered Report No: CAB/SE/14/011 (previously circulated) which sought approval for an additional £25,000 loan to the Samaritans, bringing the total secured loan to £175,000.

Councillor Ray, Portfolio Holder for Performance and Resources, drew relevant issues to the attention of the Cabinet, including that in September 2014, full Council had approved a bridging loan of £150,000 at an interest rate of 3% above bank base rate, in order that the charity could relocate to more suitable premises without a break in operations.  These terms were acceptable to the charity, as well as meeting the Council’s own loans policy.

The property identified had fallen through, but the charity had identified another suitable property, which was more expensive, but still within their available capital funds, once they had sold 46 Well Street, Bury St Edmunds. Purchase of the new property meant that the charity was £47,710 short of cash, pending the sale of 46 Well Street.  They had endeavoured to fill the gap, and had indeed found two benefactors who were prepared to loan some of the money.  However, there was still a shortfall of £25,000 and the Council had been approached to consider increasing the value of the already agreed loan by £25,000.  The loan would still be repaid within six months.  The benefactors would have a second charge (meaning that the Council’s loan repayment would take precedence).

The Cabinet was pleased to note that the Samaritans had made their own efforts to source funding to bridge the gap and considered the proposal was acceptable.

RESOLVED:

That a further £25,000 be loaned to Samaritans (bringing the total secured loan to £175,000) subject to the appropriate level of due diligence being undertaken by the Chief Finance Officer as already agreed by full Council on 23 September 2014.