Answers to your questions about the unsecured Scottish Government loan up to £100k, to help you run your business more efficiently.
Who can apply for the SME Loan?
The Resource Efficient Scotland SME Loan is aimed at Scottish businesses that fall within the EU definition of Small and Medium-sized Enterprise (SME), private sector landlords, not-for-profit organisations and charities. Information on eligibility and criteria for the loan scheme is available here.
Private sector landlords will be eligible to apply for loans if they are registered as a private landlord with their local authority or if they are able to demonstrate that they are exempt from registration.
What is the interest rate?
Loans are interest free and repayments will be made over four years unless you are applying for a renewable technology. For loans concerning renewable technologies, and if you are intending to receive the Feed-in Tariff (FIT) or Renewable Heat Incentive (RHI), the interest rate is 5 per cent and repayments will be made over eight years.
If you are not intending to claim the FIT or RHI then the loan is interest free. The interest foregone on Resource Efficient SME loans is regarded as state aid under European rules and is granted as ‘de minimis’ aid under EC regulation 1407/2013, EC 1408/2013 or EC 717/2014. Businesses applying for an interest free loan should ensure that the interest foregone added to any other ‘de minimis’ aid received does not exceed the ‘de minimis’ threshold.
What are the most popular projects receiving an SME Loan from Resource Efficient Scotland?
The top seven projects are:
1. Installation of a new biomass boiler to provide low cost heat
2. Upgrading to energy efficient lighting to lower energy bills
3. Upgrading to energy efficient heating systems to lower energy bills
4. Insulating premises to reduce heating costs
5. Installation of solar PV to generate cheap, green electricity from sunlight
6. Upgrading glazing to reduce heating costs
7. Voltage optimisation to reduce energy costs
A number of measures are eligible to qualify for the loan. To see if your project is eligible for support please click here.
You can read about how other organisations have used the loan to improve resource efficiency and maximise cost savings.
How do I go about applying for a loan?
Accessing finance is one thing, but knowing how best to invest is another. Resource Efficient Scotland offers you a free consultation with one of our specialist advisors. You will receive a report advising you on the best ways to reduce your energy usage. In addition to providing our initial report your advisor will support you every step of the way, from filling in the loan application paperwork to the installation of your energy saving equipment.
Request your free consultation by calling 0808 808 2268, emailing [email protected] or filling in the contact form.