Hereford FC director Andrew Graham has clarified that the club are unable to take loan money, should it be offered, as funding to help the club through the current season. They have received three £36K grants for the period October to December but what is to happen for the rest of the season remains unclear.
"How I see it at the moment, although there has been no confirmation from the National League whether that is the case, is that we are expecting a view in a meeting with them tomorrow when they will outline exactly what the answer is on the table," Graham told BBC Hereford and Worcester.
"But I must say that this is the first that we were aware that loans could even be up for discussion when we received a letter a couple of weeks ago from Mark Ives at the National League.
"Our articles of association don't allow us to take loans."
Graham said that Hereford won't have entered into an agreement to play if loans were awarded to underpin the finances of the club.
"We made this quite clear to the National League. We received sureties that it would be grants that we would be receiving.
"I have been pursueing Brian Barwick personally for clarity and transparancy on two issues.
"How was the funding allocation ever determined? What were the criteria for clubs to receive their respective allocation?
"Brian at this moment in time ses fit not to respond to my e-mails and we haven't had the clarity or feedback that is warranted as I see it.
"An independent panel was set up and the chairman of that panel has written an open letter expressing his concerns about the allocation model and the transparency.
"The question that needs to be answered is whether the National League were aware that the second half of the season may or may not be funded through loans. If they were aware of that then clubs such as ours are not in a legal position to accept loans should have been made aware by the National League that that was the case."
Graham then made the point that the club might have thought differently about starting the season had they known about the possibility of loans not grants.