Loan arranger working for the future good of Scunthorpe college
A £4 MILLION funding package has been made available to North Lindsey College to help cover building and refurbishment costs.
The package, from Lloyds Bank, was arranged under the Government's National Loan Guarantee Scheme – and the college insists the cash will not saddle it with a financial burden.
The college, on Kingsway in Scunthorpe, will receive a £2 million loan and a £2 million revolving credit facility, which allows it to dip in and out when it needs to.
The money will help cover the cost of previous building work and refurbishment at the college, including the STEM (Science, Technology, Engineering) Centre and Higher Education facilities. The remaining money will be kept aside for any future projects.
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College principal Anne Tyrrell said: "This funding package was taken out in the last financial year before my arrival at the college.
"A portion of it will be used to consolidate previous borrowing and past investment, with the rest kept for when we focus our investment in the future. We haven't used the credit facility and have no current intention to use it in the future.
"The college's financial health rating is good, our gearing ratio (a measure of debt levels) is very low for the education sector and our borrowing costs are also exceptionally low.
"We have been heavily involved in new buildings on the campus and major investment in learning resources. This loan enables us to ensure that we can continue investing in the college and its future.
"There is absolutely no concern that this funding package will become a financial burden, because our borrowing is so low.
"The economic landscape is not very good at the moment and every college is experiencing cuts to funding. Our top priority is ensuring we are financially stable and able to invest in the educational future of young people."
Mrs Tyrrell joined the college as principal in September last year, replacing her retiring predecessor Roger Bennett.
Cash reserves are significantly above the target level according to Mrs Tyrrell, and she described financial management at the college as "robust".
Peter Doherty, North Lindsey College's executive director of finance, said: "This funding package from Lloyds Bank will enable us to consolidate our long-term financing and ensure that we continue to provide our students with an outstanding learning experience."