Small business loans

Who can apply

The scheme is aimed at Scottish businesses that fall within the EC definition of Small and Medium sized Enterprise (SME), private sector landlords, not-for-profit organisations and charities.

However, businesses operating in the fisheries sector do not qualify.

What are the benefits?

• No set up charges
• An immediate and ongoing reduction in energy costs
• Significant savings compared to other forms of finance
• Investment can be set against capital allowances
• Some technologies are eligible for Enhanced Capital Allowances; for more information visit www.eca.gov.uk.

What measures can be installed?

A range of measures that reduce energy consumption and/or renewable energy technology installations are eligible for funding.

Energy efficient measures and renewable energy technologies that are eligible for funding include:

• Improved lighting and controls
• Compressed air fittings
• Boiler replacements
• Heating controls
• High efficiency electric controls
• Building and pipe work insulation
• New plant/machinery
• Solar photovoltaic
• Hydro-electric
• Wind
• Solar water and space heating
• Wood fuel heating systems (boilers and room heaters/stoves)
• Heat pumps (ground, air and water source).

The list is not exhaustive and other energy saving or renewable technologies may be considered.

However please be aware that any electricity-generating renewable system, which the energy review suggests will result in the site becoming a net exporter of electricity over the course of a year, is not eligible for a loan.

Real life case studies

Take a look at our collection of real life case studies of how the Energy Saving Trust has helped businesses in Scotland become more energy efficient.

• New boiler system for a private sector landlord
• Energy efficient ironing press for Edinburgh kilt-makers
• Double glazing and energy saving light bulbs for Rob Roy Hotel.

What are the criteria?

In order to qualify, your business must:

• Be based in Scotland
• Have been trading at least 12 months
• Have fewer than 250 employees
• Have a turnover not exceeding €50 million (approximately £40 million) and /or a balance sheet total not exceeding €43 million (approximately £35 million).¹
• Have no controlling interest of more than 25% by a non SME
• Have had an energy review carried out by an approved energy consultant or a home energy report if a private sector landlord
• Be applying for a loan of between £1,000 and £100,000
• Use the loan for measures that reduce energy consumption and/or to install renewable energy technologies
• Agree that repayments will be made within 4 years for energy efficiency only measures and within 8 years for renewable energy technology installations
• Have a satisfactory credit score
• Be eligible for funding within the context of EC State Aid rules
• If a charity or a not-for-profit organisation, your memorandum and articles must allow you to borrow money.

¹ Calculated in accordance with European Commission Recommendation 2003/361/EC

What to do next

Call the Energy Saving Scotland advice network on 0800 512 012 and ask to speak to a business advisor.

You can also download copies of the brochure and application form using the links below:

• Download: Energy Saving Scotland - small business loans brochure (PDF, 795K
• Download: Energy Saving Scotland - small business loans application form (PDF, 337K)

Please note, an Energy Review is required before you apply for a small business loan. Read about Energy Reviews.