9:53am Thursday 11th March 2010
By Nafeesa Shan
TWO East Lancashire colleges have taken advantage of a low cost bank loan system to create state-of-the-art facilities.
Accrington and Rossendale College and St Mary’s College in Blackburn borrowed a total of £162,000 from Barclays European Investment Bank scheme.
The scheme was launched to offer colleges a chance to modernise their facilities.
Accrington and Rossendale College received around £90,000 to help create its new campus, which includes a new dance studio, industry standard theatre, hair and beauty salons and TV studios.
And St Mary’s College said the £72,000 it received as a loan helped fund its sport and performing arts academies.
The Barclays scheme aims to help reduce the cost of borrowing for institutions undertaking capital invest-ment projects, ranging from refurbishments to campus expansion or redevelopment.
The scheme is successful as it offers a single up-front payment of £72,000 to £266,000, which can be used to reduce the cost of borrowing or for re-investment in the institution.
The two colleges were part of a group of eight in the North West that benefited from the scheme.
Stephen Carlisle, prin-cipal of Accrington and Rossendale College, said: “The loan terms enab-led us to borrow enough to build a modern, hi-tech campus which significantly enhances the learn-ing experience of our students.
“The investment has already paid dividends as we have already seen an increase in our learner numbers.”
Kevin McMahon, principal of St Mary’s College, said: “We are very pleased to benefit from this payment, particularly when the public sector is under such financial pressure.”
Simon Brooks, European Investment Bank vice president, said: “Many of the UK’s further educ-ation colleges need to modernise their campuses to deliver effectively to their students the courses and training that are needed in today’s economy.
“These loans means that Barclays Commercial Bank, in partnership with the European Investment Bank, will be able to offer further education colleges very attractive financial terms to allow them to undertake this much needed updating.
"I am pleased we are able to make this possible.”
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