SME Loan Scheme

The SME Loan Scheme provides Scottish Government funding to help small and medium-sized businesses pay for energy efficiency and carbon-saving projects. Loans of up to £100,000 are available to finance the installation of energy-efficient systems, equipment, and building fabric improvements. The scheme also offers cashback grants of up to £30,000 to eligible SMEs installing qualifying equipment. The cashback grant covers 75% of eligible costs up to a maximum of £20,000 for energy efficiency measures and up to £10,000 for renewable heat measures such as heat pumps, biomass boilers, and solar thermal systems. Eligible measures include heating, ventilation, and air conditioning upgrades, renewable heat technologies, insulation improvements, LED lighting, solar thermal systems, wind turbines, and biomass boilers. Since its inception, the scheme has provided Scottish businesses with over £55 million in loans for more than 1,500 projects. Applications require a free report from Business Energy Scotland recommending the energy improvements, and decisions are typically made within 10 working days of application submission.