Questions and Answers with Business Loans Scotland

Who we are

Business Loans Scotland, a consortium of Scotland’s local authorities, provides loan finance up to £100,000 to new and growing, small and medium-sized businesses (SMEs) across Scotland. The Fund benefits from European Regional Development Fund (ERDF) financial support increasing the monies available to lend to eligible businesses.

Who can apply

We can support the following types of legally formed and trading business:
• Limited Companies
• Partnerships including Limited Liability Partnerships
(LLP’s) with 4 or more partners
• Partnerships including Limited Liability Partnerships (LLP’s)
with 3 or fewer partners (loans over £25,000 only)
• Sole Traders (loans over £25,000 only)
• Businesses may operate as a Social Enterprise or Co-operative
Our primary focus is on businesses engaged in the Business to Business (B2B) and Business to Consumer (B2C) categories.
Details of eligible and ineligible sectors are available on our WEBSITE. Please contact us to discuss your eligibility.

Please use the contacts section of our website to identify your local contact and discuss support available in your area.
How can the funds be used?

Loans may be used for
• working capital
• purchase of plant and equipment
• purchase of business property

Business Loans Scotland offers gap funding up to a maximum of £100k to small and medium sized enterprises (SMEs) within our geographic area of operation where public sector funding (including Business Loans Scotland’s contribution), would not exceed 50% of the total funding package.

Business Loans Scotland offers Business Loans on the following terms:
• Interest typically fixed at 6% (a higher rate may be applied
for new start businesses with little or no security).
• Loan term of up to 5 years.
• Security will be taken where appropriate/relevant.
As well as our loans, we want businesses to benefit from all the expertise, advice, training and support that we can offer through our local business advice provision. The business adviser allocated when you submit an enquiry to us will discuss your requirements and offer support and assistance where relevant. This support is available throughout the period of the loan and can continue beyond this time where it is deemed beneficial to do so.

What to do next

1. Register online at using the ‘Enquire Now’ tab.
2. Once eligibility is confirmed you can apply using the Online Loan Applicationsystem (OLA). All of the information that we need including supporting documentation and financial information is uploaded in OLA.
3. Once approved, loan documentation will be issued. This sets out the terms of the Loan and any pre conditions that have to be met before the loan can be made.
4. Fulfil the preconditions and accept the loan agreement. If an application is unsuccessful then all of the business and personal
information provided will be deleted from our system.

How long does the application process take?

On average, and assuming we receive all the relevant information, a decision can be made in around 6 weeks. Throughout this process a Local Authority adviser will be your main contact and will be able to guide you through each step.