From today, small to medium-sized enterprise (SME) housebuilders in Scotland can apply for short-term loans from the Scottish government, up to £1 million. The support for these businesses through the COVID-19 crisis is welcome news to the industry.
Loans will be available to SMEs who can demonstrate that:
- They are an existing business in Scotland which has been directly affected by COVID-19.
- Their turnover is less than £45 million and they are building five or more homes per annum.
- Their business was financially viable before COVID-19.
- Funding cannot be secured from existing lenders or their own resources to meet liquidity needs.
- The business has been unable to secure sufficient funding from the UK Government or other Scottish government COVID-19 schemes.
The funding will cover three months of liquidity support to applicants. Key features include:
- Loans available between £50,000 to £1 million.
- Fixed interest rates of 2% per annum.
- Flexible repayment terms, with the option for capital and interest payments to be offset for 12 months. The majority of loans are expected to be repaid within 24 months.
- Security on loans will be assessed on a case-by-case basis.
Applicants will be asked to confirm why existing support routes are not appropriate or sufficient.
The process opens from 14:00 on 18 May 2020 and those applying will be asked to complete a form and to provide financial information to support their application.
Full details are available here.
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