Fisheries Loan Scheme

This is a joint initiative involving The Royal Bank of Scotland plc, Comhairle nan Eilean Siar, HIE and Western Isles Fishermen’s Association.  It is a co-ordinated scheme which aims to create and retain employment opportunities in the Western Isles by encouraging business development in the fisheries sector.

Objectives

A wide range of projects in the fisheries sector may be assisted. However, the Scheme partners will seek to direct funding under the scheme to particular priority areas in order to maximise the long term impact of the Scheme within the local economy. Fishing vessels which meet the following criteria will generally receive priority under the scheme:

• Vessels of 12 metres or over registered length, or in the case of first time owners (Skipper applicants), 10 metres or over
  
  
• Vessels less than 10 years old with multi-purpose fishing capability
  
  
• Applicants who have gained a Class II (fishing vessel) Ticket or an Inshore Skipper’s Ticket appropriate to the size of the intended vessel
  
  
• Suitably experienced younger fishermen taking their first step in vessel ownership
  
  

Eligibility

• Eligible businesses must have fewer than 50 employees and must operate on a full-time basis.
  
  
• Applicants must be resident and maintain a business in the Western Isles throughout the period of the loan.
  
  
• Applicants must complete the Application Form / Letter of Consent and submit a Business Plan including projected financial statements for 3 years. New applicants must also submit 6 months personal bank statements or, in the case of existing businesses, 6 months business account bank statements.
  
  
• Only sole traders, partnerships, limited companies and co-operatives are eligible for assistance.
  
  
• Applicants will be asked to demonstrate that other sources of funding relevant to their project have been approached.
  
  
• Retrospective applications will not be considered for assistance.
  
  

Funding Services

• Term Loans: Available for the purchase of fishing vessels of 12 metres or over registered length, or in the case of first time owner/skippers 10 metres or over, loans of up to 40% of eligible project costs, subject to a maximum loan of £100,000. The maximum repayment period is 10 years. For all other projects loan finance of up to £10,000 with a minimum loan of £2,000. The maximum repayment term is 5 years.
  
  
• Interest: 1% over base rate of the Royal Bank of Scotland plc for the first year, not more than 2% over base rate thereafter.
  
  
• Security: A Marine Mortgage must be provided as security for the loan.
  
  
• Capital Repayment Holiday: Free for 1 year for Royal Bank of Scotland business customers
  
  
• Insurance discounts: 10% for Royal Bank of Scotland products
  
  

"Contact Us!"  for help and advice, applications, or more information, at:

Stornoway – 01851 707 317 – business.advantage@cne-siar.gov.uk
                               
Balivanich (John Huson) – 01870 602 425 – jhuson@cne-siar.gov.uk
                               
Daliburgh (Lynne MacMillan) – 01878 700 863 – l.macmillan@cne-siar.gov.uk