Council loans cash to rugby team

Nottingham City Council will loan £150,000 to help a rugby club "address short term cash flow issues".

The money will support Nottingham Rugby Limited as it attempts to gain promotion to the Guinness Premiership this season.

It will also enable the club to provide additional services through its community development programme.

The loan is repayable with interest over six years and will be secured against the club's fixed assets.

Last season, Nottingham Rugby finished joint second in National League One.

Premiership ambitions

The firm has produced a document to promote the club to potential investors, setting out its premiership ambitions and plans to raise £4m from the sale of shares.

Council deputy leader Graham Chapman said: "This is a good time to be supporting the club.

"Hopefully it will build on last season's success and raise the profile of Nottingham as a sporting city."

Geoff Huckstep, chairman of Nottingham Rugby, said: "We are very pleased that the city council has agreed to support (the club). It is a huge help."

The Community Development Programme began in 2003, reaching out to more than 50,000 children and young people.

"Following this agreement with the city council we can now look to expand the scheme to achieve our target of visiting over 45,000 children per year by 2010," Mr Huckstep said.

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