Page last updated 20 February 2017
 

Asset Loans

Forms and tools for loan applications:

Please send completed forms to Beth Baines: bbaines@northamptonshire.gov.uk

For MAINTAINED* schools NCC will make a loan for any purpose it agrees is in the interests of the school, provided it is for the enhancement, replacement or provision of an asset that will have a life at least as great as the duration of the loan.

Maximum amount of loan

3% of the current school budget share (excluding rates) times the number of years of the loan, subject to the annual repayment not exceeding 3% of the school budget share.

Scheme key points:

  • Sums less than £10,000 will not normally be considered as suitable for asset loan finance.  
  • Maximum Term of Loan is 5 Years
  • Loans for IT equipment maximum of 2 or 3 years, depending on the type of asset you wish to purchase with the loan.
  • Interest is charged at PWLB** rate plus 1% plus 0.5% for those schools not within NCC's banking group.
  • A school in a deficit budget position will not normally be granted an asset loan until the deficit has been repaid in full.
  • For works to school buildings/site, a School Asset Management Plan will need to be in place before a loan can be awarded. Please see the School Managed Projects web page.
  • Schools are required to abide by NCC financial regulations and standing orders in purchasing, tendering and contracting matters. Please see Section 4, Part 6 of the Financial Management Handbook. Documentary evidence of the procurement process will be requested on application.
  • Please note the current procurement regulations limits: 
    • Projects between £1,000 - £10,000, at least two quotations should be sought.
    • Projects between £10,000 - £29,999, at least three quotations should be sought.
    • Proposed schemes of £30,000 and above, a formal tendering procedure should be applied, with at least four tenders invited.***

For full Asset Loan Scheme details - see  Annex D of the Financial Management Handbook (PDF format 625KB) on the Financial Management webpage.

* A school which is planning to convert to an academy will not be granted an asset loan unless evidence is provided to confirm that the academy or where relevant the sponsor is willing to accept the terms of any remaining asset loan.

**PWLB Public Works Loans Board

*** unless the Governors decide otherwise, with the consent of the NCC Head of Finance.

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