Whether you’re thinking about applying for a Digital Development Loan or are already in the middle of applying you may have questions about the process. Check out our FAQs below and if you are still unsure please get in contact and we will be happy to help.
No, you do however need to provide
- A One Page Summary of Company History and Business Activities
- A One Page Summary of The Digital Project
- 12 Months Cash Flow Projections
- 12 Months Profit & Loss and Balance Sheet Projections
The Scottish Government’s Digital Development Loan has already helped many Scottish SMEs to improve their business by transforming their business digitally. Due to the success of the loan the SCOTTISH Government has increased the maximum loan amount from £50k to £100k.
Companies must show their project will either:
- Improve the company’s Digital Capacity
- Improve the company’s Digital Capability
- Improve the Digital Skills of the employees.
What type of expenditure is likely to be eligible?
- Hardware and software that increases the digital capacity and/or capability of the company.
- Expenditure on new digital processes that speed up production or enable the company to access new markets
- Ecommerce Platform / Software Integration
- Expenditure on training (does not need to be an accredited qualification).
- Routine replacements such as servers or standard software upgrade
- Hardware and software considered a normal or essential part of the business activities
- Standard expenses incurred by the business
- Staff Wages / Cashflow
- Additional finance for a project that has already started or is complete
- Brochure website & copy writing
- Digital Marketing
- Digital equipment for new employees unless this is necessary for access to the new digital processes
- Upgrades are ineligible unless it can be demonstrated that this is crucial to facilitate the digital project
- Research & development for new products for commercialisation
- Employee costs are ineligible unless it can be demonstrated that this is essential for the delivery of the project and the achievement of the outcomes.
Loan will not fund
- Businesses or projects involved in betting or gambling.
- Loans for the purchase of property for resale.
*Whilst we have provided broad eligibility guidelines you should note that every Digital Development Loan Application is assessed on a case by case basis and on its own merits
We hope to give you a decision within 6 weeks of receipt of your completed application. If we have to come back to you for more information that will increase that time frame. There is a two-stage assessment process – Stage 1 is the Business Appraisal (carried out on the basis of your application form and Business Plan), if you satisfy the requirements then the application is passed on to Stage 2 – the Financial Appraisal which requires more documentation and discussion with the loan providers, DSL Business Finance.
No. The loan is made to enable you to start a project, it cannot be used retrospectively for costs already incurred, nor can it be used as additional finance for a project that is already underway. No expenditure on or commitments to the project should be made before loan approval is confirmed.
In addition to the eligibility criteria, applications will be assessed on whether, and by how much the project delivers:
- Increased capacity – for example, able to take on new and additional work
- Increased capability – for example, faster production speed, higher quality work, faster business processes
- Increased digital skills within the workforce
Overall, the loan is aimed at helping Scottish SMEs to improve processes and productivity through digital application.
The greater the level of detail the easier and quicker is the process of assessing the application and the greater likelihood of approval. We’re looking for detailed information on how the use of the fund will improve turnover; profit; digital processes; digital skills in the workforce; employee numbers; access to international markets etc. We also need you to identify in the Application specific milestones with dates by which you expect to achieve these so that the progress of your project can be tracked.
Employee costs, both existing and new, are not eligible unless these are essential to the successful implementation of the project. Where the project includes bringing in freelance contractors to deliver or implement the project, and/or to train staff, this is potentially eligible.
Yes, charities, social enterprises, community interest companies and not-for-profits are eligible provided they meet the eligibility criteria – specifically for this sector – is it legally constituted as a company, and has it been trading (making sales, not just receiving grants) for at least 6 months. To meet the eligibility criteria it is likely that the charity’s trading arm would be the applicant, rather than the charity.
No, it is not necessary to provide three quotes. However, we do require a quote(s) for the full loan amount applied for. It is for the individual business to satisfy themselves that their chosen contractor is providing a fair price and the required competence.