Who can apply?
Applications may be submitted for community sport and recreation infrastructure projects from eligible applicants, including:
- local government authorities
- incorporated, not-for-profit organisations whose primary purpose is to facilitate community sport and recreation activities including:
- sport and recreation clubs and associations
- sport and recreation clubs who own their own land, are a tenant of a private facility or not a tenant of a local council.
- Victorian state sporting associations or a national sporting organisation seeking to invest in a community infrastructure projects
- not-for-profit and private facility managers with long-term community facility management arrangements
- private enterprises with long term community access arrangements or those who can demonstrate long term access to the public who wish to invest in infrastructure
- educational institutions such as universities or non-government schools (schools not in a position to borrow funds are encouraged to work with project partners).
Who is ineligible?
General government sector agencies generally are not able to borrow from Treasury Corporation of Victoria as they are funded through the budget process. These entities include:
- Alpine Resorts Co-ordinating Councils
- Parks Victoria
- Kardinia Park Trust
- Melbourne and Olympic Park Trust
- State Sports Centre Trust
- Public primary and secondary schools
A full list of ineligible government sector entities can be found on page 146 of the Victorian Financial Report - 2016/17
Before considering an application to the scheme you can test your project or organisations suitability by undertaking a short eligibility test.
How is the loan structured
Applications recommended by Sport and Recreation Victoria (SRV) will be subject to a credit assessment to determine the organisations ability to service a loan. This assessment will be undertaken by the Department of Finance and Treasury. Successful applicants will be recommended for a loan facility through Treasury Corporation Victoria (TCV) and a loan agreement will be executed. In certain circumstances, there will also be a requirement to execute other finance transaction documents. The Treasurer will guarantee the TCV loans provided under the scheme and stipulate the terms and conditions associated with the loan approval including security requirements.
During the construction period, the loan will be progressively drawn on TCV’s 11am loan facility (interest only loan). The interest rate payable on the TCV 11am loan facility is variable, and interest is payable monthly on the first business day of the next month.
The borrower can only draw on the TCV 11am loan facility during the construction period as project expenses are incurred. The borrower is required to submit a drawdown request to SRV for approval prior to the funds being drawn down on the TCV 11am loan facility. The TCV 11am loan facility is an interest only facility and loan principal repayments are not required during the construction period but can be made if required.
On construction completion, the borrower will be required to convert the total amount outstanding on the TCV 11am loan facility to a credit foncier term loan (principle and interest loan). The credit foncier loan maturity date and interest rate are fixed. In additional a fixed amortising principal and interest repayment is applicable.
The credit foncier loan will be provided by TCV for any fixed term up to 15 years. The loan repayment instalments are payable on the first business day of the month based on either a monthly, quarterly or semi-annual repayment frequency which is specified by the borrower.
As at 17 June 2020, TCV ‘s interest rates for an 11am loan facility were 0.415 per cent, and credit foncier loan rates offered were:
- 5 year loan – 0.645 per cent
- 10 year loan – 1.05 per cent
- 15 year loan – 1.55 per cent
The interest rates detailed above are indicative only and subject to change according to movements in financial markets. The actual interest rate can only be confirmed on the transaction date and will be dependent on the applicable TCV interest rate at that time. It is also important to note these TCV interest rates exclude the SRV loan scheme interest subsidy.
The above credit foncier loan interest rates were calculated for settlement/drawdown on the transaction date. The interest rate on a credit foncier loan can also be fixed in advance of the drawdown date – this is known as a forward settlement credit foncier loan. Forward settlement credit foncier loans are a way to manage the interest rate risk exposure of a planned borrowing requirement. If transacted, the borrower has a commitment to settle on the transaction on the forward settlement date.
How is the subsidy applied
In addition to accessing a low-interest rate loan through the Treasury Corporation Victoria (TCV) , Sport and Recreation Victoria (SRV) will subsidise the interest rates for all successful applicants by 50 per cent, up to a maximum of 250 basis points (2.5 percent).
TCV will invoice both SRV and borrowers for 50 per cent of the interest due for the period. During the construction period for funds drawn on the TCV 11am loan facility, this will be monthly.
Interest payments for credit foncier loans will be made at a frequency agreed upon by TCV and the borrower, usually either monthly, quarterly or semi-annually.
TCV will invoice the SRV directly for the payment of the interest subsidy on the first business day of the month. Principal and interest repayments (less the interest subsidy) due from the borrower will be direct debited from the borrower’s nominated bank account on the first business day of the month.
Loan agreement requirements
The borrower will be required to enter into a Treasury Corporation Victoria (TCV) loan facility agreement and possibly a series of other finance transaction documents. These may include a priority deed, lessor consent deed, security deed, builders side deed, etc., subject to the complexity of the borrowing approval. The borrower may incur legal costs for the preparation of finance transaction documentation depending on the complexity of the project and the terms and conditions of the borrowing approval. A number of conditions precedent to drawing, financial covenants and ongoing reporting obligations are requirements of the TCV loan facility agreement. Conditions precedent to drawing require the provision of the following information:
- project approvals
- project budget and cashflow forecasts
- loan drawdown schedule
- audited financial statements
- executed copy of the Community Access Agreement drawdown notices.
Loans scheme applications open - 1 October 2020
Loans scheme applications close - 1 December 2020
Announcements: April 2021 onwards
Guides, templates and references
Fact sheets and templates
- Community Sports Infrastructure Loans Scheme - Cash flow template (Excel)
- Fact Sheet Competitive Neutrality (Word)
- Fact Sheet Project Management Framework (Word)
- Project Management Template (Word)
- Fact Sheet Schedule of Use (Word)
- Schedule of Use Template (Excel)
- Schedule of Use Example (Excel)
- Fact-Sheet Capital-Replacement-Plan (Word)
- Capital Replacement Plan Template (Excel)
- Detailed Area Schedule Example and Template (Excel)
- Fair Play Code form for tenants (Word)
- Fact Sheet Environmentally Sustainable Design (Word)
- Fact Sheet Universal Design (Word)
- Fact Sheet In-Kind Labour and Voluntary Support (Word)
- In-Kind and Voluntary Support Template (Word)
- In-Kind and Voluntary Support Example (Word)
- Project Governance Template (Word)
- SunSmart Online Shade Audit Tool
These publications are intended for use as a guide only and further specialist advice should be sought on the specifics of your project:
- Design for Everyone Guide
- Sport and Recreation Victoria Infrastructure Grants – Acknowledgement and Publicity Guidelines (pdf)
- Sport and Recreation Victoria Infrastructure Grants – Acknowledgement and Publicity Guidelines (Word)
- Femal Friendly Sport Infrastructure Guidelines
- This Girl Can - Helping women and girls get active
- AFL Preferred Facility Guidelines
- AFL Unisex Amenitites Guidelines
- Netball Australia National Facilities Policy (pdf)
- Netball Victoria Facility Manual
- Community Cricket Facilities Guidelines
- Tennis Australia National Tennis Facility Planning and Development Guide
- Artificial Grass For Sport Guide (pdf)
- Artificial Grass For Sport Guide (Word)
- Croquet Facility Guide
- Community sporting facility lighting guide (pdf)
- Community sporting facility lighting guide (Word)
- Good Play Space Guide: "I can play too" (pdf)
- Good Play Space Guide: "I can play too" (Word)
- Pool Concourse Guidelines
- ARV Functional Design Brief Template
- DHHS – Safe Pool Operations
- Healthy Choices: policy guidelines for sport and recreation centres
- PLA Open Space Planning Guide
- Female participation in sport and physical activity a snapshot of the evidence
- Physical activity across life stages
- Provision of drinking water fountains in public areas
- Welcoming Sport
- Engaging culturally and linguistically diverse women and girls in sports
- Women in sport and recreation in Australia
- Barriers to sports participation for women and girls
- Retaining the Membership of Women in Sport
The first completed project supported through the Community Sports Infrastructure Loans Scheme was the Grange P-12 College Learn to Move gymnastics facility
Providing organisations access to low interest rate loans between $500,000 and $10 million to deliver community sport and recreation infrastructure.