EMERGENCY LOAN FUND FOR SME HOUSEBUILDERS

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Builders in Dumfries and Galloway who have been affected by the closure of the construction industry can apply for the short-term loans worth up to £1 million each.

The emergency loans are part of a £100 million fund from the Scottish Government aimed at safeguarding jobs, protecting suppliers, ensuring the continued supply of new homes and supporting post-COVID-19 economic recovery.

Commenting, Ms McAlpine said,

“All non-essential construction work was temporarily halted at the lockdown to help save lives and protect the NHS. But it’s having a significant impact on the sector, especially the smaller housebuilders who are struggling to cope with increased costs associated with site shutdowns.

“This new loan fund will be a lifeline to small and medium-sized housebuilders operating within Scotland. It will provide urgent support to address liquidity pressures and will help ensure their future.

“Applicants should be a SME housebuilder with a turnover of £45 million or less per year and building five or more homes per annum. They should only apply for funding that is necessary for the short term. They will be asked to explain why existing support mechanisms are not sufficient for their business.

“Loans are capped at £1 million, most loans are expected to be repaid within two years with interest rates set at 2%. The minimum loan amount is £50,000.

“The application process will be open from 2pm on Monday 18 May on the Scottish Government website. Full details on the criteria for the Fund will be available at that point.”