1. South of Scotland Loan Scheme Loan Scheme

2. History of SoSLS.Loan Scheme started in 2004.88 loans granted in 10 years.£2.69m invested via SoSLS to date.Average loan granted is £30,500

3. Key Features of the Scheme Loans available between £5,000 and £50,000 Attitude to Risk Interest at Base Rate + 1%– Currently 1.5% Rate reviewed October and March each year Loan term is 5 years Early repayment is permitted Capital Repayment Holiday of up to 6 Months available Loans over £30,000 – Security required for companies

4. Location in Borders or Dumfries & Galloway S.M.E.’s Only (1-250 Employees) Limited Company, Partnership or Sole Trader New Start ups or Existing businesses Not Available to:Primary Agriculture Retail businesses Financial & Professional Services Who is Eligible

5. Loan Conditions Loans available towards both Capital Expenditure and Working Capital projects No support available for purchasing property but refurbishing and extending property is eligible SOSL support must be match funded by private sector sources

6. Loan Conditions There has to be a clear funding requirement for support Applicant businesses have to show potential to be financially viable It is helpful if the project will secure or increase employment Potential for growth in Turnover/Productivity/ Improved Products helps case Top-up loans up to £50,000 will be considered

7. The Process WRDC Role as scheme contractor Application form and financial information Business Manager Appraisal Form Financial due diligence process Final decision made by SEBSED Panel Timescale of 2 weeks

8. Key background on business Profitability, Cash flow, Solvency and Gearing The Project and Funding Package Conclusions Conditions Financial Due Diligence

9. After the Loan is Approved Loan documentation issued Conditions satisfied Loan has to be drawn down within 3 months Security put in place by SE legal SE staff monitor the business

10. Difficult Areas The Application Form is not properly completed The correct financial information is not supplied The business responds slowly to due diligence questions Clarification of security ranking can be problematic

11. South of Scotland Loan Scheme Loan Scheme