Loans of up to £100,000 are now available to help small- and medium-sized enterprises (SMEs) in Scotland increase their resource efficiency and save on costs.

Announced by Scotland’s Energy Minister Fergus Ewing, today (3 October), the ‘Resource Efficient Scotland SME Loans’ extends loans previously provided by the Energy Saving Trust (EST) in Scotland to cover energy efficiency improvements. The loans will now also cover measures to ‘save on water and materials’.

It is hoped the move will widen the scope of loan eligibility and enable a greater number of businesses to implement resource efficiency measures. To date, around 500 firms have taken out EST loans to improve their energy efficiency.

Speaking of the loans, Mike Thornton, Director of Energy Saving Trust Scotland, said: “The Scottish Government’s SME loans scheme has been successfully providing zero or low interest finance for many years to small businesses in Scotland. This extension to the scheme, to include waste and water saving measures, provides a great opportunity for SMEs to save even more money.”

A ‘one-stop shop for resource efficiency’

The new loans will be managed by Resource Efficient Scotland. Funded by the Scottish Government, and administered by Zero Waste Scotland, the initiative was launched earlier this year as ‘a one-stop-shop of free advice and information on using energy, water and materials more efficiently to save money and protect the environment’. With an annual budget of £7 million, activity has so far been limited to ‘helpline support, site visits and consultancy services’.

Ewing explained: “We launched Resource Efficient Scotland to help businesses benefit from expertise on energy, water and materials all from one service. Through the small business loans, hundreds of businesses have been able to make vital savings by putting in place ways to save on energy and produce renewable energy.

“By safeguarding and using resources wisely, with best business practice, Scotland’s firms are an example to all. I would encourage businesses to speak to Resource Efficient Scotland today to access this financial support.”

Marissa Lippiatt, Head of Resource Efficient Scotland, added: “More than 8,500 businesses have accessed advice and support from Resource Efficient Scotland since the spring and almost half a million pounds of savings for businesses have been identified so far if those businesses implement changes. Having these new loans available will help businesses go further in their efforts to be more resource efficient.”

Business Eligibility

As well as small-and medium-sized enterprises, not-for-profit organizations, charities, and private-sector landlord can also apply for Resource Efficient Scotland SME loans.

To be eligible for funding, businesses must:

• be based in Scotland;
• have been trading for ‘at least 12 months’;
• have fewer than 250 employees; and
• have a turnover not exceeding €50 million (approximately £43 million) and/or a balance sheet total not exceeding €43 million (approximately £36 million).

Applicants should also obtain ‘a qualifying report through Resource Efficient Scotland, or a non-domestic Green Deal assessment’, which identifies the measures for which they can apply for funding.

Loans for energy efficiency measures are interest free. For businesses seeking funding for renewable technologies, and intending to receive the Feed in Tariff (FIT) or Renewable Heat Incentive (RHI), the interest rate is five per cent.

Loans must be repaid within four years for energy efficiency only measures, and within eight years for renewable energy installations.

Safeguarding Scotland’s Resources

The announcement follows on from yesterday’s (2 October) launch of a resource efficiency blueprintfor Scotland. ‘Safeguarding Scotland’s Resources’ sets out an action plan for bringing about ‘a more resource efficient and circular economy’ and was put together after a finding that ‘around 75 per cent more raw materials would need to be extracted over the next 25 years if the country’s consumption trends continue at the current rate.’

As well as protecting the environment, it is hoped that resource efficiency measures will bring cost savings of £2.9 billion.

Read more about Resource Efficient Scotlandor access the application form and full eligibility criteria.