Objectives & Assistance
- Provision of loans to encourage business start-up and enable business and community development in the Outer Hebrides.
- Assist new and growing businesses & income-generating community enterprises to develop projects which enhance their opportunities for long-term sustainability and whose activities will increase economic activity and employment.
- Loans of up to £50,000 are available towards general start-up costs, new/used plant and equipment, working capital, marketing, e-commerce enablement and for upgrading tourist accommodation.
Eligibility & Conditions
- Applications considered for business and community development projects located in the Outer Hebrides, which can demonstrate: commercial viability, employment creation and/or generate additional demand for products and services.
- Each application will be considered on its own merits. However, projects in areas which are adequately served by similar existing businesses are unlikely to meet the eligibility criteria.
- Loan funding is available only to applicants unable to raise the total capital required from other commercial, private or public-sector sources.
- Applicants may be sole-traders, partnerships, limited companies, co-operative groups, community enterprises or other legitimate trading entities.
- A Business Plan, Financial Projections (3-year) and up-to-date Accounts (existing businesses only) must be submitted.
Only one loan can be applied for at any one time, with a maximum of two CnES loans running at any one time. A second loan cannot be provided unless 12 months have lapsed since the last loan was provided with at least 20% of the first loan repaid.
- Term Loans: Normally up to £50,000
- Repayment Period: Up to 7 Years
- Interest: 4% fixed (unsecured) for loans up to £10,000 and 4% fixed (secured) 6% fixed (unsecured)- for loans above £10,000
- Capital Repayment Holiday: Discretionary - up to 6 months
- Level of Funding: Up to 50% of costs
This Scheme (Business Support Scheme Reference Number : X 151/2008) is operated under the European Commission General Block Exemption Regulation (EC) No 800/2008 (Articles 13, 14, 15, 26, 27), Local Government Scotland Act 2003 and the European Communities Act 1972.