Business Loans are available to support business and community development projects within the Outer Hebrides.
Loans worth up to £20,000 are available with a repayment period of up to seven years. The interest for this loan is 4% fixed (unsecured) for loans worth up to £10,000. The interest for loans that are above £10,000 is 4% fixed (secured) and 6% fixed (unsecured). The capital repayment holiday is discretionary and is up to six months in length.
This business loan is administered by Comhairle nan Eilean Siar. Comhairle nan Eilean Siar is the local government council for the Na h-Eileanan Siar council area of Scotland which comprises the Outer Hebrides.
The purpose of this business loan is to encourage business start-up activities and to enable business and community development within the area of the Outer Hebrides. New and growing businesses and income-generating community enterprises will receive assistance in order to develop projects which will enhance opportunities for long-term sustainability and activities that will help to increase economic activity and employment.
Interested parties should note the following restrictions:
- Only one loan may be applied for, with up to a maximum of two CnES loans running at any one time. A second loan will not be provided until a year has passed since the last loan has been provided with at least 20% of the first loan having been repaid.
- Projects in areas suitably served by similar existing businesses are likely to be considered ineligible.
Applications are welcome from sole-traders, partnerships, limited companies, co-operative groups, community enterprises and other legitimate trading entities from the Outer Hebrides. Applications will be considered for business and community development projects that are located within the Outer Hebrides. These projects should be able to demonstrate the following:
- Commercial viability.
- Employment creation.
- The ability to generate additional demand for products and services.
Up to 50% of costs will be covered.
Loans are intended for the following purposes:
- General start-up costs.
- New or used plant or equipment.
- Working capital.
- E-commerce enablement.
- Upgrading tourist accommodation.