Latest HCA kick-start terms out next week

Private developers hoping to win funding from the government's new £420m Get Britain Building programme will be able to view the contractual terms from Monday 9 January.

The Homes & Communities Agency is administering the funds on behalf of government and says it "is open to all private sector organisations which control land and can develop at least 25 homes on the stalled site by December 2014".

Funding will be available in the form of commercial loans or equity stakes in the project. In December, the HCA published the suite of interest rates for loans using European Commission guidance. The loans will be tagged to the EC Reference rate as the variable base rate, 1.74% on 1 January 2012, which is increased by a margin to reflect the creditworthiness of the borrower and the level of collateral offered. The rates range from 2.34% for high collateral and strong credit rating to 8.24% for low collateral and weak credit score.

The heads of terms details will be published on Monday. The deadline for bids is 12noon on Monday 30 January.

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