north ayrshire economic and business development services

FUNDING

WEST OF SCOTLAND LOAN FUND

What is the objective of the West of Scotland Loan Fund?
The West of Scotland Loan Fund is a loan scheme to provide finance to existing small businesses (up to 250 employees) in North Ayrshire, who have difficulty in raising finance from normal commercial sources. The proposal must indicate a funding gap. The scheme will not be the sole funder of projects, but will operate in conjunction with other lending agencies. It must be clear that all possible sources of private finance have been exhausted prior to an application being submitted.

Its objectives are to encourage the growth of small businesses which can contribute to the North Ayrshire economy in terms of jobs, growth potential etc. by providing access to additional funding.

What companies are eligible?
Companies from a range of business sectors who can demonstrate significant business growth potential can apply: Industrial - Commercial - Professional (Please note: The scheme does not support retail businesses).

Through a business plan or health check, the company must demonstrate that increased funding will offer tangible business success and sustainability.

What can the support be used for?
Loans can be used for a wide variety of purposes, including the purchase of plant and equipment (new or used) and assistance to purchase premises. The loans cannot be used to obtain private cars. Loans are not generally available for the purpose of day to day working capital.

What are the main terms of the scheme?
The maximum loan amount is £50,000 for businesses with a proven track record of 2 years plus, otherwise £30,000. Interest rate of 2% over Bank Base Rate, fixed for the term of the loan. The maximum repayment period is 7 years, although capital holidays may be considered up to a maximum of 12 months. Loans under £20,000 generally require no legal security.

How does the scheme work?
Application forms, supported by a business plan, audited accounts, projections etc., where appropriate, will normally be prepared and submitted to North Ayrshire Council’s Economic Development Team. The applicant must supply baseline information such as sales turnover and staffing levels, which will be a condition of any award.

Visit the West of Scotland Loan Fund website for further information, or click here to contact North Ayrshire Council.