Guidelines for Assistance


  1. This paper provides guidance which can be applied to requests for financial assistance from the AAF Company.
  2. The Board of Directors of the AAF Company (the Trustee of the Army Amenities Fund) may, in appropriate circumstances, diverge from the guidelines and financial limits set out in this paper.
  3. Funding of any type will not normally be provided for areas that are an appropriate charge against the Commonwealth.


  1. The AAF Company may provide grants for specific purposes. A grant is the advancement of monies with no requirement to make any form of repayment in support of a single purpose amenity.
  2. Grants may only be provided in cases where there is a need which cannot be met from other sources and the assessed benefits accruing to Army members are sufficient to justify the expenditure. Requests for grants must be kept to a reasonable level, as they may become a substantial drain on the Company’s liquid assets and therefore, future earning ability.
  3. Grants will only be approved once it is determined that the recipient does not have the capacity to repay a loan of any type.

Eligibility Criteria

  1. The AAF Company may provide grants to ARA and Tri-Service entities for the provision of recreational amenities to Army members and their dependants or for other worthwhile purposes. Entities seeking grants are to provide sufficient detail to satisfy the Trustee that they are a ‘viable entity’ or that the outcome of the grant will provide an enduring benefit.
  2. Applicants will be measured against the following criteria:
    • Grants will only be provided to entities that have no access to other avenues of funding within the ADF.  Applicants should therefore provide details of efforts they have made to generate funding or details of their financial status.
    • Grants will normally be made to entities which have ‘wide’ appeal (e.g., entities with a large participation base, ARA areas hosting Inter service sport etc) or to applicants who demonstrate that the loan will provide a tangible benefit to Army members and dependants.
    • Grants will be made in preference to a loan where the recipient is able to demonstrate that loan repayments will jeopardise the financial viability of the entity or dramatically reduce the services provided to its members.
    • Grants to entities who, as a result of the provision of funds, provide an improved and/or new amenity to a large participation base will be preferred.


  1. The AAF Company may provide interest free and/or low interest loans to ARA and Tri-Service entities for the provision of recreational amenities to ARA members and their dependants or for other worthwhile purposes. The type of loan approved will depend on the amount of money required, the borrower’s capacity to service the loan and the effect of the loan on the Company’s finances in both the short and long term and consequently on its ability to meet its commitments to all members of the Army.
  2. Loans for any worthwhile purpose will be considered by the Trustee however, all applications will be assessed against the eligibility and defining criteria for funding assistance (see below). In broad terms, applications in the first instance should include:
    • A business case for the loan application including:
      1. the level of assistance required;
      2. the level of financial contribution by the entity;
      3. approaches made to other funding sources; and
      4. an indication of the numbers of members that will benefit from the funding assistance.
    • An indication of the capacity of the entity to meet loan repayments.
    • Copies of the entity’s financial statements.

Eligibility Criteria

  1. The following eligibility criteria for AAF Company loans will be adopted:
    • Loans are normally made to ARA and Tri-Service entities, which have ‘wide’, appeal (entities with a large participation base or for works that will result in an ongoing benefit to members).
    • Loans to entities who, as a result of the provision of funds, provide an improved and/or new amenity to a large participation base will be preferred.
    • As the AAF Co has a limited income base, entities demonstrating sound business practices and a proven ability to meet repayments are likely to be preferred.

Loan Conditions

  1. The loan, if approved, will be offered under the terms and conditions set by the Trustee, including:
    • the rate and frequency of repayments,
    • the interest rate to apply, and
    • any other condition deemed necessary by the Trustee.
  1. All loans will be formally documented and appropriate security must be arranged. The appropriate type of loan and the form of security required will be determined in each instance by the Trustee when considering loan applications.


  1. The interest rate applied to any interest-bearing loan will be determined by the Trustee but will be below commercial rates.

Principal Plus Interest Loans

  1. Loans approved to most income generating organisations will be repayable by instalments of principal plus interest. The Trustee will initially designate the repayment period after careful consideration of the financial status of the entity. The Secretary to the Trustees will consult with the applicant to reach agreement on repayments and the repayment period.

Interest Free Loans

  1. Interest free loans may also be made available on a fixed, short-term basis for amenity purposes where it is not appropriate to require interest repayments. Loans of this type may be appropriate for bodies, which have low revenue producing capacity.


  1. The AAF Company is also Trustee of the Messes Trust Fund.  The AAF Company will provide limited financial assistance by way of interest free loans to messes of new or re-raised units, and additionally, provide grants including the return of funds held in trust in the Messes Trust Fund by the Company to units which have been re-raised.
  2. Should a Mess be in a strong financial position, interest may be applied to any loan.  When applying for a loan from the Messes Trust Fund, Messes are to use the guidelines at para 10 as a guide.