Purpose: To bridge the gap between CAGS approval and grant disbursement.
Loan Cap: Around £10,000 per loan.
Total Pot: Final amount depends on the Trust’s overall financial position.
Background
The Bridging Loan Scheme is a form of support for Tiree Crofters, with the aim of plugging the gap between work commenced through CAGS, and the actual receipt of CAGS funding. We have found that this funding gap frequently presents cashflow issues for Crofters, and in some instances prevents projects from starting or from taking place at all. It is also a barrier to Crofters who may not have the up front capital to begin work, and therefore hits smaller businesses hardest.
The Bridging Loan Scheme will run initially as a pilot project over the course of one year – with the Trust Board due to take a decision thereafter about possibly continuing the project. The total pot for this initial funding year is expected to be around £50,000 – although this will be dependent on the Trust’s wider financial position.
We hope to support around five projects in the pilot year. Please note that this means that – depending on availability – that not all applicants may receive funding. However, the Trust is interested in understanding the demand for this support, as this may help build the business case for future funding programmes, or pursuing external funding.
This work emerged out of a consultation exercise and wider community engagement around climate adaptation. We are therefore keen that applications – wherever possible – demonstrate a relevance with environmentally beneficial projects and highlight the possible benefits that projects will have on land management practices, natural habitats, and
Eligibility
- Any Tiree-based, registered crofter, with a valid and accepted CAGS funding application, is eligible to apply.
- Applications are limited to one application per business per year.
- The Trust may ask for evidence to see that you meet the eligibility criteria, or for clarifying information about your business.
Funding Terms
- The maximum amount of funding an applicant can apply for is £10,000.
- This can only be for up to 80% of the costs of the project (i.e. the full reimbursable amount that you can receive from CAGS).
- It is possible for the total cost of the project to exceed £10,000 – but the Bridging Loan cannot exceed £10,000.
- The applicant must provide evidence that their CAGS application has been successful when applying. This should be in the form of a ‘consent to start work’ letter.
- The project cannot have started already at the time of application.
- The funding can only be used for work set out in the CAGS application.
- The full amount of the loan must be repaid upon completion of the project and receipt of CAGS funding. This must be within 12 months of receipt of the funds.
Applications
- Applications will be on a first come first served basis.
- Once you have received a decision on your CAGS application and have received your ‘consent to start work letter’, you should apply directly to the Trust, completing and signing the application form.
- Once received, the Trust will verify eligibility and check your application. We will make a swift decision about applications and ask applicants for further detail if required.
- If an application is successful, applicants will be asked to return a signed Loan Agreement.
- The loan will be issued in full once the first invoice is provided by the applicant.
If you have any questions about the above, or about your eligibility, please contact the Trust directly at admin@tireetrust.org.uk.