Secured commercial loans are available to support new and growing businesses in Shetland. These loans aim to encourage the creation, development and growth of small and medium-sized businesses (SMEs) that will contribute to and strengthen the local economy in Shetland through jobs and other benefits.

Other types of finance, such as equity and hire purchase facilities, are also available in specific circumstances in which they'd be beneficial. You should discuss the type of finance you need with Shetland Islands Council before you submit an application.

These loans usually take the form of gap funding or co-investment with banks and other finance providers. You should investigate and apply for all other forms of funding before you apply for a council loan.

The loans are repayable over a fixed term. Interest and capital repayments are collected by Direct Debit each month. 

These loans are available to new and growing businesses in Shetland.

Voluntary and community organisations can apply to fund business or development projects. 

You must have a viable business plan that demonstrates your business can pay back the loan.

You'll also be expected to show that the loan will help your business and provide clear benefits for the Shetland economy. Potential benefits could include (but aren't limited to):

• new business activity or creation
• business expansion and new employment
• quality and service improvements
• skills development or workforce upskilling
• increased productivity and efficiency
• technological innovation
• import substitution
• positive environmental impact

UK Financial Services Regulation places restrictions on lending of £25,000 or less to sole traders and partnerships or limited liability partnerships with 3 or fewer members. Therefore, sole traders or small partnerships are not eligible to apply for loans of £25,000 or less.

The loans are repayable over a fixed term. Interest and capital repayments are collected by Direct Debit each month.

Loan recipients are responsible for paying Shetland Islands Council's legal fees in connection with the loan. There are no arrangement fees or early repayment fees on these loans.

It's also recommended that applicants take independent legal advice, which may involve a separate cost.

New or existing small to medium-sized businesses (SMEs) in Shetland.

This will depend on the nature of your loan request and the review process. Shetland Islands Council will evaluate your application and make the lending decision. Typically, this will take several months.

UK Financial Services Regulation places restrictions on lending of £25,000 or less to sole traders and partnerships or limited liability partnerships with 3 or fewer members. Therefore, sole traders or small partnerships are not eligible to apply for loans of £25,000 or less.

Visit the Shetland Islands Council website to check your eligibility and submit an online enquiry.