Borrowing Guidelines for Clubs

Undertaking borrowings with a financial institution
Any unit is authorised to incur borrowings up to €15000, without seeking external approval. For borrowings in excess of this limit the following authorisations are required:

  • Under €15,000- no external approval required.

  • €15,000 to €75,000- County Board approval required.

  • €75,000 to €150,000- Provincial Council Approval Required

  • Over €150,000- National Financial Management Committee, (NFMC) approval required.

Note that the above limits relate to the cumulative borrowings position of the unit, not merely to borrowings contemplated for a specific project or undertaking.
Any unit seeking to borrow over €150,000 is required to submit a formal application to the county committee for approval. The sanctioned application is then required to be submitted to the provincial council for secondary approval before submission to the N FM C
The required application form is included, (see attached), The application must be accompanied by the following.

  • If the loan is to be secured against the existing property of the club, a copy of the deed of trust vesting the property in the association.

  • Business plan detailing proposed utlilsation of the funds

  • Future cash flow projections for the unit

  • Financial statements of the unit

  • Details of existing borrowings outstanding

  • Letter of offer from the financial institution

  • Bank confirmation of existing balances outstanding

A condition of NFMC consent will be a clause in the loan agreement authorising the bank to notify Central Council In the event of the loan falling into arrears or current accounts operating in ongoing surplus.
The letter of borrowing authorisatlon will, if relevant, explicitly authorise the trustees of the borrowing unit to mortgage or charge any or all of the real property of the unit as security. The letter of borrowing authorisation must not be construed as a guarantee from Central Council.
In recognition of the fact that this arrangement will foster good banking practise by GAA units the principal lending Institutions have agreed to facilitate this policy and will not advance funds without the appropriate level of authorisatlon.
The unit will be notified In advance of the NFMC meeting which will consider the proposal. The decision of the NFMC, and the authorisation letter if applicable, will be notified to the unit in writing within 10 working days of the meeting, and copied to the county and provincial bodies involved.




17-Apr-11 by Colette Fox – PRO