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Scottish Loan Scheme

Support provided by Scottish Enterprise Highlands and Islands Enterprise South of Scotland Enterprise

What does this involve?

The Scottish Government has made funding available to Scottish Enterprise to provide loans through the Scottish Loan Scheme (SLS).

The Scottish Loan Scheme can provide funding of between £250,000 to £2 million (up to £5 million in exceptional circumstances) to growth focused Scottish companies that have a viable business plan and a clear ability to repay the debt.

  • Loans can be used for a variety of purposes, including:
  • Working capital
  • Capital expenditure
  • Growth funding
  • International expansion
  • Marketing investment

Am I eligible?

To be eligible for investment from the Scottish Loan Scheme:

  • your business must be based in Scotland or ready to locate to Scotland (and located in Scotland before any loan funds are made available)
  • you must have a viable business plan which demonstrates you can pay back the loan
  • you must demonstrate that you have tried to get funding from existing funders or there is justifiable reason why you have not
  • your company is at least two years' old with minimum £250,000 turnover and be profitable (or projecting profitability within the next 12 months)
  • the loan funding needs to secure or maintain economic impact in Scotland in line with the level of funding being sought
  • your business must support fair work practices, including paying the Living Wage, with no inappropriate use of zero hours contracts or exploitative working patterns

Restricted sectors include banking and insurance and sub-prime lending, gambling, adult entertainment, activities with adverse impact on human rights, tobacco and locally traded services.

What does this cost?

There is no cost to apply.

Who is this for?

Companies based in Scotland who have been operating for at least two years with a minimum of £250,000 turnover.

How long does this take?

This depends on the nature of your loan request. Submit an enquiry further details

Important information

If you have met the requirements, you will be required to submit the following:

  • full application form
  • business plan
  • two years of historical annual accounts
  • three years of forecasts (to include P&L, balance sheet and cashflow forecasts)
  • details of current borrowing

The business plan and financial forecasts need to clearly demonstrate the company is viable and able to repay the debt within sufficient headroom. Loan applications will be subject to credit checks of directors and shareholders with over 20% shareholding.

Any existing debt will be considered when assessing loan affordability.

If your loan is approved, on an ongoing basis, you'll need to provide management accounts (P&L, balance sheet and cashflow), annual budgets and annual accounts. In addition, high-level information on economic impact derived from the funding will be required.

Next steps

Submit an enquiry and an adviser be in touch to talk through your options and help you apply for funds.

Support provided by Scottish Enterprise Highlands and Islands Enterprise South of Scotland Enterprise