GovWire

College capital loans will provide funding to eligible capital projects in the financial years of 2023 to 2024 and 2024 to 2025. These loans will cover funding gaps resulting from commercial borrowing restrictions following the reclassification of the FE sector.

Capital loans are repayable and lending is subject to terms and conditions.

Who can apply

You can apply for a college capital loan if youre a:

• FE college
• designated institution
• sixth form college

There is no limit to the number of applications per college. You should submit an application for each capital project with a funding gap.

Eligible projects

Eligible capital projects must:

• be underway or in advanced stages of planning
• have a funding gap as a direct result of restrictions to commercial borrowing following the reclassification of the FE sector
• have evidence of intent to borrow commercially before 29 November 2022

Projects may already get government funding or be self-funded.

All projects must:

• improve the college estate
• support the delivery of high-quality further education in England

More information on the eligibility criteria is available in the application guidance (PDF, 366 KB, 31 pages).

What youll get

Were not setting a limit to the amount of loan you can apply for. Youll need to provide evidence of the level of commercial borrowing you intended to take before 29 November 2022. Well consider projects and loan amounts on a case-by-case basis.

If your application meets the eligibility and assessment criteria, well develop proposed repayment terms for your college.

You must draw down the loan between 1 June 2023 and 31 March 2025.

Apply for a loan

Read the application guidance (PDF, 366 KB, 31 pages) before applying for a capital loan. It explains:

• the eligibility and assessment criteria
• what evidence youll need to provide as part of your application
• the specific templates youll need to submit alongside the application form

Complete the form for the type of project youre submitting a loan application for:

• DfE grant-funded project application form (MS Excel Spreadsheet, 33.9 KB)
• self-funded project application form (MS Excel Spreadsheet, 35.5 KB)

As well as the application form, youll need to complete the:

• estates expenditure profile template (MS Excel Spreadsheet, 36.7 KB)
• project costs template (MS Excel Spreadsheet, 102 KB)
• cash flow forecast template (MS Excel Spreadsheet, 395 KB)

If youre applying for a loan for a self-funded project, youll also need to complete the project summary template (MS Excel Spreadsheet, 43.7 KB).