The Scottish government has announced an emergency loan fund to support small and medium-sized housebuilders experiencing liquidity issues due to the effects of the Coronavirus pandemic.
The £100 million fund is open to applications from housebuilders registered in Scotland and is designed to complement existing support schemes. It will offer short-term loan funding to cover three months of liquidity support.
Loans will be available ranging from £50,000 to £1 million at an interest rate of 2% per annum. The majority of loans are expected to be repaid within 24 months
Applicants will need to demonstrate that:
- They are an existing business in Scotland which has been directly affected by COVID-19;
- Their turnover is less than £45 million;
- They are building five or more homes per annum;
- Their business was financially viable before the Coronavirus pandemic;
- Funding cannot be secured from existing lenders or their own resources to meet liquidity needs; and
- The business has been unable to secure sufficient funding from the UK government or other Scottish schemes.
Full details can be found at: https://www.gov.scot/publications/coronavirus-covid-19-liquidity-support-sme-housebuilders/
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