Highland Business Growth Fund

The scheme will offer a 2 year unsecured, interest-free, debt bond to any eligible business in the Highlands which requires access to finance to start up or grow. There will be a personal obligation to repay or in the case of limited companies, a directors’ guarantee. The target business sectors will be those which form part of the Highland Council’s priorities for HOL and the priorities of the ERDF programme.The aim of the fund is to help reduce the impact of the "credit crunch" on robust businesses. 

For existing businesses the maximum size of a single bond will be £50,000. Applicants will have to demonstrate a robust business plan and be able to use the bond as leverage for at least an equal amount from a commercial source of loans such as a bank or private sector financier. At the end of 2 years, bond holders will be required to redeem the debt facility in full from a commercial source of finance or convert it into a further 3 year term loan from HOL at 5% annual interest. The former grant component of this scheme has now been suspended from 1 May 2010.

For business starts the maximum size of a single bond will be £20,000. Applicants will have to demonstrate a robust business plan and be able to use the bond as leverage for at least an equal amount from a commercial source of loans such as a bank or private sector financier. At the end of 2 years, bond holders will be required to redeem the debt facility in full from a commercial source of finance or convert it into a further 3 year term loan from HOL at 5% annual interest.

 A Business Adviser will assess the business plans of applicants to ensure their strength and eligibility for The Scheme and will make recommendations to the Board of HOL, who will make the final decisions on awards.

The scheme is targetted at existing businesses operating in the priority sectors of Tourism and Culture, Energy, Food and Drink, Life (and other) Sciences and the Creative Industries, together with new start ups. The Retail Sector is not eligible.

The scheme is part funded by the European Regional Development Fund