Who can apply?
- Sole traders
- limited liability partnerships
- limited companies
can apply for loan finance to start up or grow businesses in the Shetland Islands.
The Council can invest in micro, small and medium sized businesses (up to 250 employees and turnover not exceeding €50m).
UK Financial Services Regulation places restrictions on lending £25,000 or less to sole traders and partnerships/limited liability partnerships with 3 or fewer members. The Council is therefore unable to provide direct loans to sole traders/small partnerships of £25,000 or less but can assist with signposting to other loan providers who offer approved lending services.
Whilst there is no lower application limit for larger partnerships or limited companies, a loan below £25,000 may not be a cost effective way of financing a project.
Projects applying for loan assistance will be expected to demonstrate that at least one of the following primary outcomes can realistically be achieved:
- Introduce new business activity
- Improved product quality
- New market development
- Improved productivity
- Improved service delivery
- Introduce new or improved manufacturing/production processes
- Import substitution
Projects which cannot demonstrate that they will achieve one or more of the above primary outcomes will not be considered for assistance.
Applications must also demonstrate which of the following secondary outcomes will be achieved by their project:
- New job creation
- Encourage inward investment from the private sector
- Encourage receipt of external grant funding
- Improve access to employment and economic opportunities in rural areas
- Improve local control of resources
- Improve the local skills base
- Improve local employment conditions
- Increase local wage rates
- Infrastructure and/or service development in remote and rural areas
- Promote more sustainable use of resources
- Reduce costs and/or improve efficiency
- Result in environmental improvements
Projects which cannot demonstrate achievement of secondary outcomes may still be considered for assistance, but will not be regarded as a priority for funding.