12.05.20
Scottish Government announces £100m fund for SME housebuilders
Scottish Small and Medium-sized Enterprises (SMEs) in the housebuilding sector will be able to apply for a short-term loan of up to £1m from the Scottish Government.
The pandemic lockdown restrictions have seen many sites across the sector close to limit the spread of the virus, and SME housebuilders have faced liquidity issues.
A total of £100m has been made available from the Scottish Government emergency loan fund in order to safeguard jobs and protect suppliers, support economic recovery with the continued supply of homes and retain diversity of the housebuilding sector.
Housing Minister Kevin Stewart said:
“To save lives and protect the NHS during the coronavirus outbreak all non-essential construction work has been halted. This decision was not taken lightly and I know it is having a profound impact on the housebuilding sector, particularly smaller businesses which are struggling to cope with delayed house sales and the increased costs associated with site shutdowns.
“This new loan fund is open to small and medium-sized housebuilders operating within Scotland. It will provide urgent support to address liquidity pressures facing housebuilders and will help ensure their future.
“I would like to thank everyone in the sector for their support during the coronavirus pandemic and assure them that the Scottish Government is committed to safeguarding jobs and putting plans in place to ensure economic recovery over the months and years ahead.”
Applications open from May 18 on the Scottish Government Website and are aimed at SME housebuilders with a yearly turnover of £45m or less and who build five or more homes per annum.
The minimum loan amount is £50,000 and is capped at £1m, with most expected to be paid back within two years at a set interest rate of 2%.