Guidance

Apply for a college capital loan

Eligible further education (FE) institutions can apply for a loan for capital projects that face a funding gap following the reclassification of the FE sector.

From:
Department for Education
Published
25 April 2023
Last updated
18 May 2023 — See all updates

This guidance was withdrawn on

The college capital loans scheme closed for applications in May 2023.

Applies to England

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 you’re 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 you’ll get

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

If your application meets the eligibility and assessment criteria, we’ll 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 you’ll need to provide as part of your application
  • the specific templates you’ll need to submit alongside the application form

Complete the form for the type of project you’re submitting a loan application for:

As well as the application form, you’ll need to complete the:

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

Email your completed application form and templates by midnight on 31 May 2023 to collegecapital.LOANS@education.gov.uk.

Updates to this page

Published 25 April 2023
Last updated 18 May 2023 + show all updates

  1. Updated the self-funded project application form.

  2. Updated the 'cash flow forecast template'.

  3. First published.

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