Green Grants and Loans
Climate change isn’t just a global issue – it directly affects the future of your business. For small to medium-sized enterprises (SMEs), making the shift towards sustainability can seem overwhelming, but it’s also a huge opportunity.
Reducing your environmental impact, not only helps protect the planet, it can also:
- cut operational costs
- enhance your reputation and
- ensure long-term resilience.
With the help of green grants and loans, you can make these changes without breaking the bank.
Green Grants and Loans: What Are They?
Green grants provide non-repayable funds, and green loans often come with lower fees or interest rates. These resources help businesses implement sustainability projects, such as installing renewable energy systems or upgrading infrastructure to improve efficiency.
Are They Available for SMEs?
Absolutely! Many green grants and loans are tailored specifically to SMEs, acknowledging their vital role in climate action. Numerous schemes are designed to support smaller enterprises in making sustainable improvements.
Eligibility Criteria
Eligibility for grants and loans varies but often includes:
- Meeting the SME definition under the Companies Act 2006 (fewer than 251 employees, turnover below £36 million, and assets under £18 million)
- Trading for at least 12 months
- Owning premises or holding a commercial lease
- Being based in a specific geographical area.
Examples of Green Grants available for Scottish SMEs
| Grant Name | Purpose | Eligibility | Offer | Deadline |
|---|---|---|---|---|
| Glasgow City Council Green Business Grant | Energy efficiency, renewables, waste management, and reducing energy bills and emissions. | SMEs based in Glasgow with permission to modify premises. | Up to £10,000 covering 50% of project costs. | 20th December 2024 |
| Energy Saving Trust Low Emission Zone Support Fund | Replace non-compliant vehicles with eco-friendly alternatives. | Scottish micro-businesses or sole traders operating within Low Emission Zones (Glasgow, Edinburgh, Aberdeen and Dundee). | £2,000 for vehicle disposal, plus £1,000 for purchasing an e-cargo bike. | N/A |
| Inverclyde Council Towards Net Zero Grant | Reduce carbon emissions through eligible projects. | SMEs based in Inverclyde, trading for at least 12 months. | Free carbon emissions audit and up to £10,000 towards project costs. | Ongoing |
| Perth and Kinross Green Recovery Capital Development Grant | Support businesses affected by COVID-19 in reducing their carbon footprint and boosting local economy. | SMEs based in Perth and Kinross, with a demonstrable need for investment. | Up to 50% of eligible costs, minimum spend of £10,000, with funding up to £25,000 | Ongoing |
| Grants for Fife Businesses – SME Development Grant | Help Fife-based SMEs transition to Net Zero, improve sustainability, or create green jobs. | SMEs based in Fife, working with Business Gateway Fife. | Up to £2,850 for projects in Net Zero transition, workforce upskilling, innovation, and more. | 31st January 2025 |
Examples of Green Loans available for Scottish SMEs
For SMEs seeking larger investments in sustainability, green loans offer a practical solution with benefits like reduced fees or cashback. These loans can support purchases of renewable energy systems, energy-efficient vehicles, or infrastructure upgrades.
| Loan Provider | Purpose | Eligibility | Offer |
|---|---|---|---|
| Business Energy Scotland SME Loan Scheme | Help businesses make energy-efficient upgrades. | Scottish SMEs, non-profits, and charities, trading for 12 months. | £1,000-£100,000 loans for energy-saving projects, with potential cash back of up to £30,000. |
| NatWest and RBS Green Loans | Finance eco-friendly business assets like solar panels or EVs. | UK businesses using at least 90% of the loan for green projects. | Loans from £50,001 to £10 million, with fixed and variable interest rates, no arrangement fee. |
| HSBC Go Greener SME Reward | Support investments in renewable energy and sustainable solutions. | SMEs with turnover under £25 million. | Loans between £25,001 and £300,000, with 1% cash back on eligible sustainable investments. |
| Lloyds Clean Growth Financing Initiative | Support for projects with environmental impact. | UK businesses using the loan for sustainable initiatives. | 0% arrangement fee and reductions on fixed asset finance for qualifying projects, including energy efficiency and low carbon transport improvements. |
Taking the Next Step
Securing green grants and loans isn’t just a financial advantage—it’s a meaningful step toward safeguarding the future of both your business and the planet.
By adopting sustainable practices, your SME not only:
- reduces operational costs and risk exposure
- enhances its reputation with customers, funders and staff and
- positions itself as a leader in the shift to a low-carbon economy
but also contributes to the global fight against climate change.
This Scottish Climate Week, you have the opportunity to do the right thing for the environment while benefitting your business.
At Black Skies Blue, we’re dedicated to helping SMEs across Scotland, unlock the potential of sustainability. We’re here to make the process straightforward and stress-free.
For more information please contact Jayne Saywell, one of our Business Advisors. Her knowledge, experience and ideas can help support your journey to a greener, more resilient future.
