Business
DEVELOPING BUSINESS
Read the information below and if you think your new/existing business
meets the criteria of the Fund and you want to make sure that your business
is eligible to apply, visit the Loan Fund web site where you can access
the easy to use 4 step procedure and download an application form if applicable:
The West of Scotland Loan Fund
- Provides loan finance to new and existing small and medium sized enterprises
(SME's) in the West of Scotland area (Strathclyde)
- The fund aims to help businesses which have good commercial proposals
but have difficulty in raising finance from normal commercial sources
- The business must demonstrate a funding gap and the fund will not
normally be the sole funder of projects
- At least 50% of the funding package must be provided by the private
sector
- The fund is open to businesses operating either as a sole-trader,
partnership, co-operative or limited company
The following sectors are considered eligible for the WSLF to
invest in:
- manufacturing
- service to manufacturing
- construction
- wholesale
- transport and distribution
- software development
- agriculture linked to farm diversification
- tourism and service based (providing they are not one of the ineligible
sectors)
The following sectors are considered ineligible for the WSLF to
invest in:
- retail
- motor vehicles
- real estate/property development
- professional services
- social and personal services
- pubs
- clubs and restaurants
- local services
Loans can be used for:
- the purchase of plant and equipment (new or used)
- the provision of working capital
- the purchase of property
Loans cannot be used for:
- property development
- obtaining private cars
Loans up to £50,000 are available to existing
businesses trading for more than 2 years
Loans up to £30,000 can be arranged for new or
existing businesses trading for a shorter period of time
The interest rate is 2% above the Bank Base Rate, fixed
for the period of the loan
The maximum repayment period is 7 years although 'capital
holidays', usually 6 months, may be considered
Loans under £20,000 require no legal security
A Business Plan supported by audited accounts etc, where appropriate,
will normally be prepared and submitted to the Economic Development unit
of the relevant Local Authority
There is approximately a 4 weekly meeting cycle and, depending on when
the application is received, a decision can sometimes be made within 5-6
weeks
Is Your Business Eligible ?
For further information contact the Economic
Development Unit or West
of Scotland Loan Fund Manager
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