Liquidity Support for SME Housebuilders

A £100 million emergency loan fund has been created to support small and medium-sized (SME) housebuilders with liquidity issues due to the temporary closure of housebuilding sites.

The fund is open to applications from existing  SME housebuilders registered in Scotland and complements existing COVID-19 support schemes. The fund aims to:

  • safeguard jobs and protect suppliers
  • ensure a continued supply of homes
  • support post-COVID-19 economic recovery, and
  • retain diversity within the housebuilding sector.

Who can apply?

SME housebuilders which can demonstrate that:

  • they are a non-public organisation that have a business registered in Scotland which has been directly affected by COVID-19
  • they complete five or more homes in Scotland per annum
  • their annual turnover is less than £45 million
  • their business was financially viable before COVID-19
  • funding cannot be secured from existing private banks or other financial institutions or from their own resources to meet liquidity needs, and
  • the business has attempted to secure funding from the Scottish Government, UK Government or other public sector COVID-19 schemes before they have applied to the fund.

How much funding is available and on what terms?

The fund will offer short-term loan funding to applicants to cover COVID-19 liquidity support to their business. Key features include:

  • loans of between £50,000 to £1 million, which will normally be limited to a maximum of 25% of annual turnover
  • fixed interest rates of 2% per annum, and
  • flexible repayment terms, with the option for capital and interest payments to be offset for 12 months – the majority of loans are expected to be repaid within 24 months.

Providing security will help reduce the risk profile of loan funds for the Scottish Government

How to apply

More details on how to apply for the support are available on the website here.

Get in touch

If you have any questions about the liquidity support for SME housebuilders, please get in touch by completing the contact form below.