Small and medium-sized housebuilders experiencing cashflow issues as a result of the coronavirus outbreak and the temporary closure of building sites will be able to apply from a new £100m loan fund for short-term loans of between £50,000 to £1 million. Interest rates are set at 2% and it is expected that loans will be repaid within two years.
The targeted emergency loan fund was announced by the Scottish Government on 7 May and 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
You can apply for this loan if you meet the following criteria:
- you are an SME housebuilder operating within Scotland
- your yearly turnover is £45 million or less
- you build five or more homes per annum
The fund is complementary to other loans available, but businesses will need to explain why existing support mechanisms open to them are not sufficient to see them through the crisis.
The application process opens at 14:00 on Monday 18 May and will be available here.
You can also check what other support you and your business will be eligible for here.
If you have any questions or would like to discuss the impact of coronavirus on your business, please get in touch with your usual Campbell Dallas contact.
The information in this blog should not be regarded as financial advice. This is based on our understanding in May 2020. Laws and tax rules may change in the future.