Aberdeen City Council is a member of Business Loans Scotland, a consortium of Scotland’s 32 local authorities, offering loan finance to new and growing small and medium sized businesses (SMEs).
Business Loans Scotland offers gap funding up to a maximum of £100,000 to SMEs where public sector funding (including Business Loans Scotland’s contribution), would not exceed 50 percent of the total funding package.
Loans are available to all eligible businesses who meet the set criteria whilst also demonstrating their commercial viability and who may have been unable to raise all of the required funding from the usual commercial sources.
Businesses from a range of sectors (including manufacturing, construction, transport and distribution, tourism and tourism infrastructure and software), are eligible to apply for support and loans may be used for working capital, purchase of plant and equipment and for the purchase of business property.
Typically the interest rate will be 6% however this may be higher depending upon the level of risk.
For start-up businesses that evidence higher risk in terms of viability and /or collateral the rate may be higher.
The loan conditions are standard for all businesses. Security will be taken where appropriate. The maximum repayment period is 5 years and capital holidays up to 3 months may be considered.
This funding is available to help unlock traditional commercial lending where by spreading risk we hope to encourage greater investment that will stimulate growth.
An Aberdeen City Council spokesperson said: “In today’s uncertain market it is understandable that businesses lack the confidence to grow, however it is vital they keep pace with competitors.
“Business Loan Scotland funding is available to help unlock traditional commercial lending where by spreading risk we hope to encourage greater investment that will stimulate growth.”
With loans available from £25,000 up to £100,000 with a fixed interest rate of just 6%, the time is now to invest in your business; applications must be lodged by Autumn 2018.