FEASIBILITY_STUDY , item 14. PDF 1 MB - Meetings, agendas and ...

A feasibility study prepared for the Black Box TrustNovember 20116.6.2 Restricted lendingBanks‟ lending practices and provision of credit have been reinvented and restored to strictguidelines as a result of the credit crunch. Easy credit is no longer available and debt hasbecome expensive as banks try to recoup losses in their balance sheets.With the Black Box‟s current overdraft, carrying the venue‟s net deficit as a going concern, it isunlikely the bank would continue to support the Black Box going forward, without public sectoror other financial backing, despite it being 82% self-generating.6.6.3 Other sources of fundingIdentifying other sources of funding, as well as the type of funding the Black Box will apply forwill be key to its future operation as it will have to meet the funders‟ criteria.One risk is that the Black Box will not meet the criteria of other sources of funding and will berelying solely on existing applications. The second risk is that the potential sources will onlyagree to fund the venue on the basis that existing or other funders comply in matching funds.The final risk is that available funding will not be aligned to other agreed funds, incurring ashortfall in funds for the venue to remain open for business.It is also, worth pointing out that the Black Box may have already missed opportunities to submitapplications to other sources of funding and will have to wait until they are open for applicationthe following year, or on whatever time period they are offered.6.6.4 Competition for fundingCompetition for funding in the current period of public austerity will increase as organisationsapply for limited pots of money and government departments try to do more with less,prioritising existing or planned flagship projects.The risk to the Black Box will be it not being viewed as a priority case and the basis on which itwas set-up as a temporary venue.6.6.5 Lack of a business caseThe lack of a robust business case for the Black Box‟s continued operation will place the venueat a disadvantage when applying to funders.Given the impetus to gain funding for financial year 2012/13 for the venue‟s continued operation,the risk is that applications for potential funds will be required sooner rather than later and theBlack Box will not have a suitable business case prepared in time to append to its applications50