• Cymraeg
  • Skip to Content

Town Centre Loan Scheme

Over £400,000 is being made available to help bring empty sites and premises back into use as part of our commitment to the regeneration and diversification of Llanelli and Ammanford town centres.

We have secured funding to the value of £418,393 via the Welsh Government Town Centre Loans Fund to offer repayable finance to applicants, split equally between Llanelli and Ammanford town centres. Loans will be made available to eligible applicants to fund regeneration schemes.

  • The minimum loan to be awarded per application is £25,000 with no maximum value up to the available balance remaining in the fund.
  • The loan can only support a maximum of 75% of the loan to value of project cost.

Applications will be considered on a first come first served basis subject to the assessment process.

The maximum term of a loan will be for 5 years.

There is a choice of repayment terms:

  • Full repayment at the end of the loan term
  • Repayment of 50% of the amount in Year 4 with the remaining 50% Year 5
  • Upon sale of the property or within 5 years of the loan payment date, whichever is earliest

All loans will be interest-free.

An administration fee will be charged for individual loans to cover costs associated to the processing and management of the loan and to reflect the level of risk. The fee, which will be determined by the Loan Panel, will not exceed 15% of the loan amount.

The final costs associated with the administration fee can either be paid to us in full before the loan is drawn down or paid in stages to correspond with the repayment terms of the loan.

Security over property(ies) will be taken, which may include legal charges ranking behind the applicant’s bankers. However, in balancing the applicants’ risks with the Funds’ risks, personal guarantees will also be sought when appropriate.

The Repayable Finance scheme operates within the Llanelli and Ammanford town centre boundaries and all properties subject to applications should be located within this boundary.

Eligibility is restricted to owners or potential owners of properties for the purpose of reducing the number of vacant, derelict or underutilised premises and redundant development sites in Llanelli and Ammanford town centres. Owners may include:

  • Businesses (sole traders/partnerships/companies)
  • Developers
  • Landlords
  • Social enterprises
  • Housing associations
  • Private residents 

All schemes supported by the fund must support regeneration of the town centres by creating floor space and encourage more diverse and sustainable uses for empty sites and premises, such as combination of commercial, leisure and residential use. 

Applicants who are aiming to develop properties for the purpose of residential use only can explore options of applying for the Houses to Homes Loan Fund.

We will consider costs specifically associated to the scheme for which the application refers to. We have the right to refuse inclusion of costs that cannot be justified.

The loan can be used to fund:

  • Cost of purchase of properties and/or development sites (as long as this is part of an overall regeneration development scheme as indicated above)
  • Investigations
  • Demolition
  • Land reclamation
  • Site preparation
  • Associated Infrastructure and Utilities
  • Premises construction cost
  • External and internal structural costs
  • Associated professional and legal fees. (These can be considered as part of the application but any costs incurred prior to approval of loan will be at the applicants’ risk if in the event the application is unsuccessful
  • Any costs in preparing tenders, etc. are eligible for consideration for the loan if the application is successful 

The provision of the loan to clear existing debts or existing loans from lenders is not eligible for consideration.

Other funding options can be used in conjunction with the loan as long as they are funding separate elements of the works.

Cash payments to contractors, etc. will not be acceptable as part of the loan.

All applicants will be required to clearly demonstrate an ability to repay the borrowing.

Businesses and social enterprises

To provide trading accounts for at least 3 years.(If applicants have been trading for less than 3 years, trading accounts for the period since trading must be provided).

Applicants must also provide projected financial statements to highlight how the loan will be repaid. This will include projected balance sheet cash flow and profit and loss forecast for the repayment period of the loan. A detailed project plan / delivery programme specific to the scheme will also be required.

Landlords

To provide details of properties owned and rental income for the last three years. If applicants have been receiving rental income for less than 3 years, records of income since the first receipt must be provided.

Applicants must also provide projected financial statements to highlight how the loan will be repaid. This will include a rental income forecast for the repayment period of the loan.  A detailed project plan / delivery programme specific to the scheme will also be required.

Private residents

To provide details of all income. Applicants must also provide projected financial statements to highlight how the loan will be repaid. This will include a personal budget planner and rental income forecast for the repayment period of the loan.  A detailed project plan/delivery programme specific to the scheme will also be required.

Tenants with leases

To provide details of all income. Applicants must also provide projected financial statements to highlight how the loan will be repaid. This will include a personal budget planner and rental income forecast for the repayment period of the loan.  A detailed project plan / delivery programme specific to the scheme will also be required.

(Tenants need to show formal authority from the landlord to undertake proposed works. Tenants must also demonstrate that there are at least 30 years remaining on the lease in order to be considered for the loan)

In order to avoid unnecessary expense by applicants, applications will undergo a two stage assessment and evaluation process:

  • Stage 1 - Expression of interest
  • Stage 2 - Full Application

The 'Stage 1: Expression of interest' application form will provide initial indication of project eligibility, indicative costs, viability and level of funding available.

If the application is deemed eligible for further consideration, a Stage 2 application form will be provided together with the loan guidelines detailing the supporting documentation required along with the terms of finance.

If you have any questions, contact:

For Llanelli - Barry Hale, bhale@carmarthenshire.gov.uk, 01554 748813

For Ammanford - Wyn Maskell, wmaskell@carmarthenshire.gov.uk, 01554 748814

The second stage of the application will be more detailed in order to define the actual funding requirement and offer along with associated terms and conditions.

The Assessment of the Stage 2 application will include:

  • Commercial evaluation: Based on principles of good lending practice including credit checks, criteria of the scheme being met, appraisal of application form, ID and project plan will be undertaken on all proposals.
  • Financial assessment: the completed loan application will be sent to the appointed Financial Consultant to undertake a detailed financial evaluation and assessment of the application (it is not anticipated that a detailed financial evaluation will be required for some applications, e.g. private residential owners, tenants and private sector landlords)

The appointed Financial Consultant, based on the information provided by the applicant, will provide a comprehensive report to include the identification of any risk associated with the investment, the knowledge of any relevant current market conditions and a clear and concise recommendation to be presented to the Loans Fund Panel. 

An appointed Quantity Surveyor will assess the application, quotations, valuations and programme of works to confirm accurate costing and value for money of proposed construction work, professional fees, etc. associated with the scheme. The appointed Quantity Surveyor will provide a comprehensive report of the above along with recommendations to be presented to the Loans Fund Panel.

The following information will be required to assess all loan applications:

 Businesses, Social Enterprises and Developers

  • Completed Town Centre Loan Fund Application Form.
  • A project plan and delivery programme specific to the scheme. We will provide a template.
  • Detailed CVs for all business proprietors, directors and partners.
  • Accounts from the last three years. If applicants have been trading for less than 3 years, trading accounts for the period since trading must be provided.
  • Copies of business bank statements from the last six months.
  • Details of other borrowings outstanding (if applicable).
  • Evidence of match funding for the proposed scheme.
  • Projected balance sheet, P&L and cash flow for the term of the loan.
  • A copy of a passport or photographic driving licence for all business proprietors.
  • A report from a suitably qualified professional (QS or Architect) itemising a breakdown of the project costs to which the loan is requested.
  • Evidence of planning permission and / or Building Regulations approval of project.
  • If the property associated to the application is leased by the applicant, they must provide formal authority / permission from the landlord to undertake proposed works. Tenants must also demonstrate that there are at least 30 years remaining on the lease in order to be considered for the loan.

Landlords and Housing Associations

  • Completed Town Centre Loan Fund Application Form.
  • A project plan specific to the scheme. We will provide a template.
  • Detailed CV’s for all parties to the application.
  • Accounts from the last three years (if applicable), or full details of rental income received.
  • Copies of bank statements from the last six months.
  • A schedule of properties owned (if applicable).
  • Details of other borrowings outstanding (if applicable).
  • Evidence of match funding for the proposed scheme.
  • A copy passport or photographic driving licence for all parties.
  • Copy of landlord licence (if applicable).
  • A report from a suitably qualified professional (QS or Architect) itemising a breakdown of the project costs to which the loan is requested.
  • Evidence of planning permission and / or Building Regulations approval of project.
  • If the property associated to the application is leased by the applicant, they must provide formal authority / permission from the landlord to undertake proposed works. Tenants must also demonstrate that there are at least 30 years remaining on the lease in order to be considered for the loan.

Private Residential Owners

  • Completed Town Centre Loan Fund Application Form.
  • A project plan specific to the scheme. We will provide a template.
  • Detailed CV’s for all parties to the application.
  • Copies of bank statements for the last six months.
  • Proof of income.
  • Details of other borrowings outstanding (if applicable).
  • Evidence of match funding for the proposed scheme.
  • A copy passport or photographic driving licence for all parties.
  • A report from a suitably qualified professional (QS or Architect) itemising a breakdown of the project costs to which the loan is requested.
  • Evidence of planning permission and / or Building Regulations approval of project.

Tenants

  • Completed Town Centre Loan Fund Application Form.
  • A project plan specific to the scheme. We will provide a template.
  • Detailed CV’s for all parties to the application.
  • Copies of bank statements for the last six months.
  • Proof of income.
  • Details of other borrowings outstanding (if applicable).
  • Evidence of match funding for the proposed scheme.
  • A copy passport or photographic driving licence for all parties.
  • A report from a suitably qualified professional (QS or Architect) itemising a breakdown of the project costs to which the loan is requested.
  • Evidence of planning permission and / or Building Regulations approval of project.
  • Formal authority / permission from the landlord to undertake proposed works.
  • Proof to demonstrate that there are at least 30 years remaining on the lease

A Loans Fund Panel has been established which will:

  • Give due consideration to applications for the Town Centre Loan Fund.
  • Recommend approval or otherwise of loan fund applications together with specific terms and conditions with respect to the repayment period and security to safeguard our lending.

The Panel will reach one of 4 possible decisions:

  • Further information required
  • Agreed without conditions
  • Agreed subject to conditions
  • Application for funding declined.

If the application is successful:

  • A Loan Agreement will be issued along with any other documents required such as Directors’ guarantees, security documents and standing order mandate forms.  
  • In all circumstances, security will be required by means of a Legal Charge on the property. In these circumstances we will request sufficient information with regard to any property of the applicant to enable it to proceed.
  •  Applicants will have 30 days to accept the terms and conditions of the loan offer, after which an offer will lapse.
  • Following acceptance of an offer and completion of necessary security documentation the loan will be available for drawdown.

Payment of the loan will be made through BACS to the applicants designated bank account.

Any arrangement and security fees will be paid before the loan is drawn down.

Our officials and the appointed Quantity Surveyor will monitor the use of the loan funds by arranging visits to the property(ies) to ensure the programme of works and valuations are being monitored. This will include taking photographic evidence before, during (in some circumstances), and after completion of the works.

The funding will be used strictly for the purpose of town centre regeneration in accordance with the scheme.

 Llanelli Strip

Page updated on: 14/07/2017

do it online