The Abbey Access Centre on Monks Road has been saved from possible closure thanks to a £20,000 loan from City of Lincoln Council.
City Council members heard at a meeting on January 14 that, had the interest-free loan not been approved, the centre would have been forced to cease operations.
Council leader Ric Metcalfe, in his role as Portfolio Holder for Corporate Management and Customer Services, approved the loan to the community centre in November last year.
Cllr Metcalfe said: “The Abbey Access Centre plays a vital role in the economic, social and environmental regeneration of Abbey ward by delivering training and community activities that promote social well-being.
“The centre was facing cashflow problems that would have led to its closure, leaving the local community without these facilities.
“The council stepped in immediately to provide this six-month loan. Without this, it is quite possible the centre may have been forced to cease operating.”
Councillors revealed in the meeting last night that the centre does not receive funding until the courses at the centre have already taken place.
Without the loan, which is due to be repaid on June 1 this year, the courses could not go ahead.