Yes, all Making Enterprise Happen investments are at least 50% loan.
An investment can be used for almost anything including capital expenditure, revenue funding, marketing, business development or working capital.
Resilient Scotland aims to fill the gap that exists in funding for organisations seeking to move into debt finance but unable to secure lending from a bank. If you have questions about what this means, or what constitutes a refusal, please contact us to discuss.
All potential investments will be reviewed to ensure compliance with State Aid regulations. Further guidance will be provided to organisations whose proposals progress to the next stage, but we do recommend that applicants seek independent advice. Applicants are required to inform us if they have already received investment that is considered to be State Aid (this could be in the form of grants or subsidised loans).
We will take security for the value of the loan, which may involve securing property or equipment that you already own or are buying with the investment. This acts as protection for Resilient Scotland should you fail to meet your loan repayments.
We will discuss our requirement for security with you during the assessment process.
We will consider all investment proposals that meet our criteria and outcomes. Applications from partnerships or consortiums would be considered on their merits.
Resilient is not currently accepting applications from CIC’s limited by shares, because of the possibility that they may generate financial benefit for individuals, such as shareholders and investors, and this is not compatible with the charitable aims of Resilient or the JESSICA (Scotland) Trust. We are constantly reviewing our eligibility criteria and will update the website and FAQ’s should this situation change.
You may repay the loan early; there are no fees for doing so. However, if you seek to repay the whole of the outstanding loan amount within the first three years of the term of the investment then you must also repay a proportion of the grant ( this will be detailed in your loan agreement).
You may make larger payments than the agreed monthly payments, but these must be of £1000 or multiples thereof.
You may be required to submit financial information and other information on an ongoing basis as part of our monitoring process; this requirement will be different for each applicant. We usually require that you submit financial information quarterly and budgets and accounts annually.
You are required to inform us of any changes in governance during the repayment term, and we ask that you keep us informed of any significant changes to your business plans or key personnel.
There are no arrangement fees or legal fees in the normal course of making the loan and grant. There is a cost to drawing up and registering the security for the loan and any ranking agreements that may be required; this cost will be deducted from the grant. You may wish to take your own legal advice before signing the loan and security documents, and this may incur a charge.
In some cases, where particular conditions are imposed, the applicant may have to seek independent legal or other advice and this may incur a cost.
Yes. Some investees have taken Start & Grow investment and have successfully returned to us for further investment. All applications are considered on the same basis, so if the debt can be serviced and the outcomes are sufficient, it is possible.
Yes, but will ask to see the Terms & Conditions that apply to other loans, so that we are aware of any restrictions or conditions that other existing lenders may have imposed, in case they affect the terms of our investment. We also ask that you inform us if you intend to take on any new debt funding during the term of the Making Enterprise Happen loan.
If there are unsecured loans in the company from Directors or other individuals, we may ask for a Letter of Postponement to give us comfort that the repayment of the Making Enterprise Happen loan will be given priority. This prevents organisations from using the Making Enterprise Happen investment to repay other existing debts.
Your allocated Investment Executive will keep in touch with you throughout the life of the loan. There will be monitoring visits (at least annually), and we will ask you to provide regular up-to-date financial information.
Should you anticipate any problems with meeting your loan repayments, you should contact the Resilient team as soon as possible. We will discuss your particular situation and be flexible in our approach to helping you overcome any financial or cash flow problems if possible. We will do this by using our own expertise, by signposting you to others, or by restructuring the debt if possible.
Once any conditions of the investment are fulfilled, we will pay the full amount of the grant and loan to you by bank transfer.
- Businesses that are insolvent or at the immediate risk of insolvency
- Proposals that are merely to replace existing debt finance
- Subsidiaries of public bodies
- Proposals capable of being fully funded on a commercial basis
- Organisations whose beneficiaries are outwith the 13 eligible local authority areas
- Proposals that promote religious practices or beliefs
- Schedule 3 Community Interest Companies.