Emergency Loan Fund for Scottish SME Housebuilders

The Scottish Government has announced that an emergency loan fund will be available for SME housebuilders allowing them to apply for short term loans of up to £1 million to support them through the Coronavirus outbreak.

This will be available for housebuilders who have liquidity issues because of the temporary closure of the housebuilding sector which will see £100 million being made available by the Scottish Government. The aim is to:

• Safeguard jobs and protect suppliers
• Support post COVID-19 recovery and the continued supply of homes
• Retain diversity of the housebuilding sector.

To be eligible for funding the applicant should have a turnover of less than £45 million and build at least five homes per year. The housebuilder will be asked to explain why existing support mechanisms are not sufficient for their business and should only apply for funding that is necessary for the short term.

Loans will be capped at £1 million and will be expected to be repaid within 2 years with interest rates set at 2%. The minimum loan amount will be £50,000

Full details on the qualifying criteria can be found here:

https://www.gov.scot/publications/coronavirus-covid-19-liquidity-support-sme-housebuilders/

Applications can be made from 2pm on Monday 18 May 2020 and will close on Monday 29 June 2020.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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