Building Scotland Fund

Support provided by Scottish Government - Scottish Growth Fund

What does this involve?

The Building Scotland Fund (BSF) is a 3 year fund announced in the 2018/19 Draft Budget and is the precursor to the Scottish National Investment Bank. It will invest £150 million over financial years 2019 to 2021 in housing, modern industrial and commercial property, and business-led research and development projects.
Loans and equity investments are made at commercial rates or in compliance with EU State aid regulations. To date, the BSF has agreed investments of £100 million. The minimum BSF investment in a single project is likely to be a minimum of £1 million although they retain discretion to consider applications under this amount.

Am I eligible?

The Fund is open to non-public sector organisations including, but not limited to, businesses, housing associations, and universities.

Applications must meet the following investment criteria:

Low Carbon

for new homes, a minimum Energy Performance Certificate (EPC) B or equivalent (unless there are good reasons for C, and nothing below C)
for refurbished homes, EPC C as a condition (or D under exceptional circumstances if meet other criteria)
Fair Work

payment of the Real Living Wage
no inappropriate use of Zero Hours Contracts
action to address gender pay gap (proportionate to the size of the company)
The Scottish Business Pledge

applicants are encouraged to sign up, or show that they are working towards signing up to the pledge
In addition to these investment criteria, they will also ask for information about how projects contribute to:

- reducing carbon
- sustaining and creating places in line with the Place Principle
- tackling demographic issues
- wider community benefits
- Applicants must also demonstrate that they have approached other private lenders or investors prior to their request for funding from the BSF.

What does this cost?

There is no cost to apply.

Who is this for?

Non-public sector organisations including, but not limited to, businesses, housing associations and universities.

How long does this take?

This will depend on the nature of your project and the review process. The Building Scotland Fund team will evaluate your application and make the investment decision.

Important information

Applicants will initially need to provide an Expression of Interest, which should include the following information:

- a brief summary of the project
- a description of how it meets the fund objectives, and details of any other wider benefits it will deliver
the type of funding required – whether loan or equity finance and amounts, and how it will be repaid within 2-30 years (This should also demonstrate the ability to service any debt and/or generate the necessary equity return within a 2 to 30 year timeframe and, where appropriate, details of the assets over which security can be taken and how any inter-creditor position would be treated.)
- the overall project budget, and details of other funding/financing
- project start and end dates and estimated drawdown profile (by year) for the funding requested
current project status and deliverability (e.g. site control, planning status or commercial prospects as relevant)
- a list of project partners and actual/potential co-funders
- an indication of why public sector investment is sought
- how your project meets the investment criteria 
- how your project contributes to wider Scottish National Investment Bank principles (Low Carbon (all projects), creating places, tackling demographic issues, wider community benefits).

Next steps

Please submit an enquiry and an adviser will be in touch to discuss your needs.

Support provided by Scottish Government - Scottish Growth Fund

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