What are the restrictions and requirements of making a SITR loan?
There are a number of restrictions and requirements to qualify for SITR. Key restrictions include:
• The charity or social enterprise must have no more than £15m gross assets and 250 employees.
• The investment must be used in a trading activity (with certain trades, such as property development being excluded), however the trade can be carried out by a subsidiary that is owned 90% or more by the charity.
• The maximum amount of investment permitted under state aid limits over a three year period is approximately £300,000 or £1.5 million if the charity or social enterprise has been operating for less than seven years.
It is possible for charities to apply for advance assurance from HM Revenue and Customs to ensure that their fundraising plans will qualify for SITR.