Warrnambool City Council will act as a loan guarantor for Dennington and Old Collegians football-netball clubs.
The clubs asked the council to consider acting as guarantor for proposed loans to support construction of facilities.
Dennington submitted a written request in July 2018 for a proposed loan of $50,000, while Old Collegians put in a request for a proposed loan of $100,000.
Dennington’s borrowings are to be used to part fund the club’s contribution to the pavilion redevelopment works at the town’s recreation reserve.
At Old Collegians the proposed borrowings are to be used to undertake improvement works at Davidson Oval to the value of $120,000. The works involve the construction of a spectator veranda to the social pavilion at Davidson Oval.
The guarantee for Dennington is conditional on the club not being about to redraw on the loan for the 10 year term, while at Old Collegians it is 15 years.
Councillor Mike Neoh supported the council going guarantor.
“I think it’s great the clubs are being pro-active,” he said.
“Both clubs don’t have poker machines and they act as community hubs. They also offer gender equity, being football-netball clubs.”
Cr Kylie Gaston said the clubs were pro-actively improving the infrastructure where they played and socialised, which was beneficial to the community.