Carbon Trust offers Small Firms up to £400k interest free
Small firms investing in energy-efficient equipment can now borrow up to £400,000 interest-free, after the Carbon Trust doubled the maximum size of its Energy-Efficiency Loans.
The Carbon Trust has also lowered the minimum size of its loans, from £4,000 to £3,000, to make the funding more accessible to micro-businesses. Businesses can take out a Carbon Trust loan to buy new or replacement equipment that is more energy-efficient.
To be eligible, businesses must have fewer than 250 employees, at least 12 months’ trading history and a turnover of under £42 million. Loans are interest-free and are repayable over four years.
Over the next two years, the Carbon Trust said it expects to deliver more than £100 million in loan funding to UK small businesses.
Carbon Trust chief executive, Tom Delay, said:
“Small and medium-sized businesses are the backbone of the UK economy and key to the move to the low-carbon world.
We are extending a helping hand to them by offering more than £100 million in interest-free, unsecured loans at a time when bank funding is hard to come by.
Our zero per cent loan offer is as close to free money as a business can get, and is flexible enough to help almost any small or medium-sized business, from the corner fish & chip shop to a factory.”
Department of Energy and Climate Change Minister, Lord Hunt, added:
“Climate change is one of the biggest threats to our planet, so it’s vital that everyone plays their part. Taking action offers a huge opportunity for businesses to save money on their energy bills as well as reducing emissions and driving the move to a low- carbon economy.”
According to the Carbon Trust, a loan of £3,000 and upwards could buy a new energy-efficient boiler or refrigerator, as well as more efficient lighting or cooking equipment. At the other end of the scale, loans of up to £400,000 could enable medium-sized manufacturing companies to fit their factories with modern, less power-hungry, production equipment.
Firms in the agricultural, transport, fishing, or horticultural sectors are excluded from the Carbon Trust loan scheme.