Micro Business Loan

Objectives & Assistance

Provision of INTEREST FREE ‘micro’ loans to encourage the creation and growth of small businesses which can contribute to new jobs in the local economy.
Assist income-generating community enterprises to develop projects which enhance their opportunities for long-term sustainability and/or stimulate the local economy.
Loans of up to £2,000 are available for general start-up costs, marketing (including trade fair attendance) e-commerce enablement and to encourage tourist accommodation providers to ‘gain a star’.

Eligibility & Conditions

Applications considered for business start-ups and existing businesses 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.
New businesses must provide a Business Plan along with Financial Projections (3-year). Existing businesses should provide a proposal overview and any other information considered necessary.

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: Up to £2,000
Repayment Period: Up to 2 Years
Interest: FREE
Security: Unsecured
Capital Repayment Holiday: Discretionary - up to 6 months
Arrangement Fee: FREE
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.