As a guideline, the following sectors are likely to be eligible for support:
- Service to manufacturing
- Transport and Distribution
- Agriculture linked to farm diversification
- Tourism & tourism infrastructure
- Service based (providing they are not one of the sectors not normally eligible for support)
Each applicant will be required to demonstrate the additionality that their business/project will achieve at the local or Scottish economy level. Certain business activities which may not strictly adhere to the above sectors may be considered, including:
- Restaurants which support the local tourism product
- Retail activities in isolated settlements where there is no suitable alternative provider within the area or with a specific tourism focus
- Specialist B2C activities where key skills could be lost (e.g. specialist florists)
Loans are available to all eligible businesses who meet the above criteria whilst also demonstrating their commercial viability. The interest rate will be fixed at 6% for the term of the loan. The interest rate may be higher for new businesses with a poor credit rating and low levels of security. No other fees or charges will be applied. The maximum repayment period is 5 years, although 'capital holidays', up to 3 months, may be considered.
Each loan will be subject to a tailored loan agreement. This is a legally binding document that will be prepared after a loan is approved.
Business Loans Scotland reserves the right to seek any form of security as appropriate. This may include a Standard Security, a Bond and Floating Charge, a Personal Guarantee or any other form of security deemed suitable.