CASH-strapped Hereford United have received a vital boost.

Interest on their £500,000 loan from the Bristol Stadium Group has been capped, and the loan will now be repayable in 2003.

Interest had already reached around £50,000 on the loan, which was set up in May 1997 and was due to be repaid in May this year before it was renegotiated.

The loan will now run parallel with a similar interest-free loan from developers Chelverton.

The decision was agreed at a meeting of developers and Hereford board members.

"The board considers this very good news and are delighted with the attitude of the developers towards the club," said director of football Graham Turner.

United hope to repay the loan by selling their Edgar Street home and moving.

"Relocation will be a long and complicated matter," Turner added. "Progress has been made with one particular site."