Business advice

Community Loan Fund

The Community Loan Fund is set up to offer loan support for community companies/ enterprises/ other community bodies within the Highland Council area. The fund is targeted specifically at Community Interest Companies, Scottish Charitable incorporated Organisations and Companies Limited by Guarantee.

The fund is delivered by Highland Opportunity (Investments) Limited (HOIL) on behalf of The Highland Council. Applications are assessed and reviewed from an economic point of view and need to demonstrate business viability and the intention to make profit. The loan terms are specified by HOIL and are reviewed on an ongoing basis.

Loan Terms

  1. Interest charged will be 4% for both secured and unsecured loans and will be fixed for the period of the loan at the rate set at time of loan pulldown.
  2. The period of loans will be 2-10 years, however, shorter term loans will be preferred for unsecured loans for project cashflow purposes.
  3. The maximum loan that can be applied for is £200,000.
  4. A capital repayment holiday of three months can be offered on secured loans, increasing to up to six months by request in exceptional circumstances.
  5. Standard security on physical asset(s) and a Bond and Floating Charge will be required on all loans with the exception of loans that are required for short-term cash-flow purposes, subject to individual circumstances including value of loan, funding package and proposed repayment period.
  6. Arrangement fee of 1% of the value of the loan will be charged.

Guidance to Complete Loan Application

  1. All enquiries should be sent to After registering your interest you will receive a loan application form which should only be completed by a director, key person or authorised agent or consultant to apply for financial assistance on behalf of the community enterprise.
  2. A complete application also requires a business plan with financial projections including a 3-year cash flow forecast and balance sheet (If organisation is already trading, a copy of previous certified accounts (3 years if available) is required).
  3. The completed application and accompanying documentation should be emailed to HOIL Investment Manager
  4. Highland Opportunity (Investments) Limited treats all loan applications and information relating to them as confidential. Full privacy notice and how we use your personal data can be found in the application form.



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