Orkney Islands Council has launched a new loan scheme to help businesses experiencing cashflow difficulties as a result of the Covid-19 crisis.
The Coronavirus Pandemic Emergency Loan Scheme will offer secured loans of between £50,000 and £100,000.
It is the second measure to be established since the council decided to create a £5 million fund in response to the economic impact of the virus and follows the Coronavirus Business Hardship Support Grant Scheme created earlier this month.
The measures were introduced after talks with island businesses.
Requests were made for the authority to help ease the immediate pressure created by poor cash flow, with all trade stopped in some sectors and severely limited in others.
Councillor Graham Sinclair, chairman of the council’s development and infrastructure committee, said: “We are very aware of the hardship many businesses are facing in these uncertain and challenging times.
“I am pleased both the emergency loan scheme and hardship grant scheme are now in place and open for applications.”
The council say the fund is intended to supplement rather than replace national support measures – and applicants should first explore whether they are eligible for assistance from the schemes put in place by the Scottish and UK Governments.
Before seeking a council loan, businesses will need to have first applied for funding from the national Coronavirus Business Interruption Loan Scheme or the Coronavirus Bounce Back Loan Schemes.
Mr Sinclair added: “Many local businesses are receiving assistance from the Government support schemes and these should be the first port of call for those affected by the economic effects of the crisis.
“But we know from our engagement with Orkney’s business sectors that the national schemes won’t help all businesses.
“The new loan scheme offers a further option for those that have been unable to secure support elsewhere.”
He urged businesses in need of help to check online to see if they are eligible, or to contact the council’s economic development team or Business Gateway Orkney if they are unsure.
Standard loan terms are for up to six years, with an initial repayment holiday period of up to a year, followed by up to five years to repay the loan balance in full.
In exceptional circumstances, requests for a loan period of up to 10 years may be considered.
