Developer Loans for Schools
Helping housing developers applying successfully for the DfE Developer Loans for Schools
On October 10th 2019, the DfE announced a pilot initiative delivering new schools to support housing growth in England.
When new housing generates demand for school places, delivering schools at the right time and place can be challenging. Developer Loans for Schools will support developers to help meet the need to build schools in new housing areas, making the development more cost effective, efficient and timely to deliver.
The pilot will run from 2019-2021, with up to £22 million available per school. These low-interest capital loans will be open to housing developers to fund new schools as part of new housing developments. The loan funding will enable developers to construct around 10 new primary, secondary or all-through schools where the DfE and local authority agree there is a need.
Developer loan funding from the DfE must be used to construct a new school on the developer’s land for occupation by a free school trust. Projects will be assessed on a case by case basis, considering the benefits that will be delivered as well as loan security, exposure to risk, and compliance with state aid and procurement law. Applicants will need to show how the loan helps unlock difficult and/or stalled sites, secures the provision of schools at the point they are needed and offers value for money.
There is a set of core eligibility criteria for Developer Loans for Schools, which includes:
- Early delivery of a new school is agreed by DfE and the local authority, and meets the need for school places generated by the housing development
- Without this funding the school and associated housing development would not progress as quickly, if at all
- The housing development has planning permission; or the proposal is supported by policy and there is a clear route to securing permission
- An approved free school application to DfE for the school will be in place prior to the loan draw down
- The borrower must be a UK registered company and have ownership of the site.
Premier Advisory Group can provide support, whether you are looking for help with site identification, want to create partnerships with high-quality Academy Trusts or need assistance with the technical authoring of a bespoke and compelling bid. We have a strong track record in supporting developer-led solutions for schools attached to housing developments and writing successful bids for government funding.
If you are interested in the above opportunity, meet the above criteria and would like to submit a project proposal, or would simply like to find out more, please get in touch with us here.