SME Loan Fund

What does this involve?

An SME Loan can be used for the installation of energy-efficient measures such as lighting and heating upgrades, double glazing, insulation and more. It is provided by the Scottish Government to support small and medium-sized enterprises (SMEs) in reducing their energy and resource costs.

An SME Loan can be used to pay for:

  • building fabric - insulation (wall, roof, floor), doors, window double and secondary glazing and draught-proofing
  • heating, ventilation and air conditioning upgrades - building management systems, heating and cooling controls, boilers, combined heat and power, heat recovery units, air curtains, destratification fans and more
  • renewables - solar PV, wind turbines, solar thermal, micro-hydro systems, biomass boilers, heat pumps, combined heat and power with biomass, wood burning stove and anaerobic digestion
  • lighting systems – fitting and controls
  • other equipment - energy-efficient motors and controls, voltage optimisation, variable speed drives, air compressors, commercial fridge and freezer units, cooking, baking and cleaning equipment, multi-glazed refrigeration doors/covers, measuring, monitoring and control equipment, IT equipment, high-efficiency hand dryers
  • water saving – installing a grey water system, harvesting rain water or sampling installing water-efficient taps
  • waste prevention and reduction – installation of equipment to improve handling and reduce waste at source

Loans are available from £1,000 up to £100,000.

Am I eligible?

The service is open to businesses and organisations across all sectors which are:

  • small to medium-sized enterprises (less than 250 employees/turnover less than €50 million)
  • non-profit organisations (charity or social enterprises)

Full details on eligibility criteria and the list of other qualifying technologies will be given to you when you make an enquiry. 

What does this cost?

Most SME loans are unsecured and interest-free. However, if you wish to receive the Renewable Heat Incentive in relation to a renewable installation, you may be offered a loan at an interest rate of 5%.

Who is this for?

Small and medium-sized organisations and non-profit organisations based in Scotland.

How long does this take?

They aim to respond to enquiries in 5 working days.

If you require an energy opportunities assessment, this will be scheduled at your convenience. This assessment is free and offered through Zero Waste Scotland's Energy Efficiency Business Support service.

The repayment term for all loans is 8 years.

Next steps

Visit the Zero Waste Scotland website for more information and to apply. 

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