Housebuilders – Emergency Loans
Housebuilders will be able to apply for short-term loans of up to £1 million from the Scottish Government to support them through the coronavirus (COVID-19) outbreak.
Small and medium-sized enterprises (SMEs) with liquidity issues due to the temporary closure of the housebuilding sector will be able to apply to a £100 million Scottish Government emergency loan fund which aims to:
- safeguard jobs and protect suppliers
- support post-COVID-19 economic recovery and the continued supply of homes
- retain diversity of the housebuilding sector
SME housebuilders will be able to apply for loan support from 14:00 on Monday 18 May on the Scottish Government website. Full details on the criteria for the Fund will be available at that point.
Applicants should be a SME housebuilder with a turnover of £45 million or less per year and building five or more homes per annum. They should only apply for funding that is necessary for the short term. They will be asked to explain why existing support mechanisms are not sufficient for their business.
Loans are capped at £1 million, most loans are expected to be repaid within two years with interest rates set at 2%. The minimum loan amount is £50,000.