Building Scotland Fund – alternative funding for the construction sector

Have you been refused funding from mainstream institutions for your property or construction project? There may be an alternative.

From 2019 to 2021, the Building Scotland Fund (BSF) intend to invest £150 million by making loans and acquiring equity in businesses. Public sector bodies involved in the delivery of the BSF are: the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise, the Scottish Funding Council and the Scottish Futures Trust.

BSF will consider projects which have already applied for funding from private lenders or other investors, have been unsuccessful, or have received terms which are not suited. Their aim is to fund projects that encourage innovation and skills development across the Property and Construction sector.

The fund is open to businesses, housing associations and universities, amongst others who are working on projects relating to housing and property development, as well as research and development projects with a likelihood of commercialisation in the future.

The application should include a summary of the project, the type of funding that is sought after, current project status and how the funding is planned to be repaid. BSF will review each application on a case by case basis, and decide whether it wants to invest and the terms which they are willing to offer. The minimum amount that BSF aims to offer to each investment tends to be at the £1 million mark, although funding of smaller amounts may also be considered.

Financing can be in the form of a loan, with the repayment terms agreed with each applicant. Alternatively, an equity investment can be agreed, where BSF will become a new minority shareholder and receive a return on their investment. Once again, terms will be agreed on a case by case basis.

For further information, and to check your eligibility for funding, visit the BSF page on Scottish Government website here.

If you would like assistance with applying for funding with your Property & Construction Projects, please email our EQ Property & Construction team at property@eqaccountants.co.uk or contact one of our offices.