Binalong Golf Club approached council for the loan after experiencing a severe cash flow problem similar to that experienced by the Yass Golf Club earlier this year.

Treasurer Tom Duffy said the Binalong Golf Club first found itself in a financial predicament following the recent $30,000 refurbishment of the facility’s bowling greens. The Club was led to believe it would receive a 50 per cent Sport and Recreation Grant towards the much-needed upgrade but the grant was not forthcoming.

“The Club seemed to be assured it would receive the grant so we used our bank funds to build the green before the 2007/2008 Bowling Competition.

“This is the first time we’ve had to seek assistance and we hope it will be the last,” Mr Duffy said.

“We are very pleased council was able to extend the help.”

Mayor Nic Carmody said councillors showed no hesitation in providing the loan, at an interest rate of 8.25 per cent for 12 months.

“The cash flow problem is not just happening in the Yass Valley. It is a concern for many clubs in many rural areas of Australia.

“Binalong Golf Club ran into trouble with an extraordinary capital expense in one year… they expected to receive a government grant,” mayor Carmody said.

“I have no doubt this problem will be rectified in the short term.”

Mayor Carmody said council had a civic responsibility to help community organisations such as the Binalong and Yass Golf Clubs in times of need.

“These clubs are community facilities and council, as the peak body of the community, should help them out.

“They are very important facilities and the community would suffer without them.”

Mr Duffy confirmed the small town of Binalong would virtually “close down” on the weekend if the Golf Club ceased to exist.

“250 people live in Binalong and the Golf Club has 350 members.

“You might as well close the town down. The pub does not open on Sunday and the Golf Club is the only place for people to go.

“It is the centre for many people, especially the older members who have worked so hard to make the Club what it is today,” Mr Duffy said.

The loan from council will enable the Club to keep trading and the Board is confident it will be able to repay the $20,000 in a maximum timeframe of 12 months.

In June, the Yass Golf Club sought and received council’s assistance by way of a short term loan, also for the sum of $20,000.