"Following approaches from the Scarlets to the Union to secure a £2m loan the WRU Board formally considered the request at a meeting on Thursday night. It is with sadness that we were unable to meet with their request," said WRU chairman David Pickering.
"We will continue to monitor the situation and will endeavour to provide as much practical support as possible to the region to ensure they can continue to function effectively. It is vital for the good of Welsh rugby that we have four viable Regions who are competitive on the field and financially sound off it.
"We are highly sympathetic to the Scarlets plight."