Micro business Loans are available to support the creation and development of small businesses within the Outer Hebrides.
Interest free, unsecured micro loans are available up to the value of £2,000 with a repayment period of up to two years. The discretionary capital repayment holiday period is up to six months in length and there is no arrangement fee.
This micro 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 micro business loan scheme is to encourage the creation and growth of small businesses which will in turn contribute towards creating new jobs within the local economy. Furthermore, this scheme will assist income generating community enterprises in developing projects that will enhance opportunities to enhance opportunities for long-term sustainability and in stimulating the local economy.
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.
Applications are welcome from sole-traders, partnerships, limited companies, co-operative groups, community enterprises and other legitimate trading entities from the Outer Hebrides. These should be micro-enterprises with 1-9 employees.
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.
Loan funding is intended to contribute towards the following costs:
- General start-up costs.
- Marketing (which may include trade fair attendance).
- E-commerce enablement.
- Encouraging tourist accommodation providers to "gain a star".
Applications may be made at any time.
Interested parties should contact Comhairle nan Eilean Siar directly in order to begin the application process. New businesses should provide a business plan alongside financial projections (three years). Existing businesses are expected to provide a proposal overview as well as any other necessary information.