Business Loan

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.

Funding

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

Contact Details

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.