When community groups come looking to the municipality for short term, or ‘bridge’ financing, they’re going to have to meet a new, more stringent set of rules.
Council passed a new policy Monday, laying out a number of criteria, including full financial disclosure, an interest rate that covers opportunity costs, and a mortgage smaller than the value of the property.
Councillor Derek Robertson pushed for the policy and says it’s the right move.
“The policy, as it was written, dealt with all the pragmatic elements of a proper bridge financing,” the Ward Six Councillor says. “Having proper security in place, ensuring there’s an interest rate so that we at least have a return.”
Bridge loan requests are often used to cover a delay in fundraising and bill payments on renovations for not for profit organizations.
