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Last update 20/07/2025

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2025 Loans & Grants for Start‑ups & Small Businesses in the Western Isles, Scotland

Introduction

Launching or scaling a business in the Western Isles (Na h‑Eileanan Siar) comes with geographic challenges, but local council schemes, UK Shared Prosperity Fund, and support from HIE and Business Gateway provide valuable financial tools.

Government‑Backed Loans

🔹 Western Isles Council Business Loan

Amount: Up to £50,000, interest-bearing (~4–6%) over up to 7 years.
Use: Covers start-up costs, new/used plant & equipment, working capital, marketing, e‑commerce, tourism upgrades (startupgrant.co.uk, cne-siar.gov.uk, Business Gateway | Business Gateway).
Eligibility: Businesses must demonstrate viability, job creation, local economic benefit (findbusinesssupport.gov.scot).

🔹 Western Isles Council Micro‑Business Loan

Amount: Up to £2,000, interest-free over 2 years.
Use: General start-up support—marketing, e‑commerce, equipment (cne-siar.gov.uk).
Eligibility: For micro-businesses (<10 employees), with local impact (findbusinesssupport.gov.scot).

🔹 Fisheries Investment Scheme Loan

Amount: Up to £100,000, commercial interest rates.
Use: Investment in fisheries vessels, equipment, or infrastructure (cne-siar.gov.uk).

Grants

🔹 Outer Hebrides Young Enterprise Support Scheme (OHYESS)

Purpose: Supports entrepreneurs under 30 (trading <5 years).
Amount: Up to £7,500 for full-time and £2,500 for part-time businesses (50%–70% support if young, net-zero, cruise product, childcare, Uist repopulation) (findbusinesssupport.gov.scot).
Duration: Running April 2024–March 2026 (cne-siar.gov.uk).
Sectors: Renewable energy, tourism, IT, food & drink, etc.—excluding accommodation (findbusinesssupport.gov.scot).

🔹 Outer Hebrides Digital Support Scheme (OHDSS)

Purpose: Supports digital upgrades and online presence.
Amount: Up to £5,000 (full-time), £2,500 (part-time), covering 50% of eligible costs. Includes mentoring and webinars (Business Gateway | Business Gateway, findbusinesssupport.gov.scot).

🔹 Outer Hebrides Business Development Scheme

Purpose: Capital grants for tools, machinery, fixtures, fittings.
Amount: Up to £3,000 (full-time), £1,500 (part-time) (cne-siar.gov.uk).

Key Resources

Business Gateway Outer Hebrides – Free business advice, planning, funding with dedicated advisers; locations in Stornoway and Balivanich (Business Gateway | Business Gateway).
Highlands & Islands Enterprise (HIE) – Co-funder of OHYESS, supports rural enterprise (findbusinesssupport.gov.scot).

Council Contact

📞 01851 600 501
✉️ enquiries@cne‑siar.gov.uk
🌐 Details via Comhairle nan Eilean Siar’s Business Gateway pages (search for “Business Loan” or “OHYESS”).

Application Advice

Engage early with Business Gateway for eligibility checks and application guidance.
Prepare comprehensive business plans, including cost breakdowns (quotes), 3-year financial projections, and proof of business viability.
Ensure match-funding is in place (e.g. OHYESS at least 50% funded).
Apply promptly—some schemes have rolling budgets.
Pursue mentoring and digital support via OHDSS and Business Gateway.

Additional Insights

OHYESS runs until March 2026, designed to retain young talent and attract investment in key sectors (startupgrant.co.uk, cne-siar.gov.uk, findbusinesssupport.gov.scot).
The Digital Support Scheme is UKSPF-funded, combining grants with expert mentoring (findbusinesssupport.gov.scot).

Frequently Asked Questions (FAQs)

🔹 What’s the max I can borrow from the Business Loan?
Up to £50,000, repayable over 7 years at interest (~4–6%) (startupgrant.co.uk, Business Gateway | Business Gateway).

▫️ Is the micro‑loan interest free?
Yes—up to £2,000, repayable over 2 years, interest-free (findbusinesssupport.gov.scot).

🔹 How much can OHYESS grant?
Up to £7,500, or £2,500; 50%–70% funding depending on age or net-zero projects (findbusinesssupport.gov.scot).

▫️ Can I apply for digital and development grants?
Yes—e.g. apply for OHDSS plus Business Development Scheme funding.

🔹 Is the fisheries business eligible for grants?
Only loans are available for fisheries; no specific grant scheme (Funding Scotland, cne-siar.gov.uk, findbusinesssupport.gov.scot).

▫️ Where is the support hub located?
Business Gateway offices in Stornoway and Balivanich provide free advice (Business Gateway | Business Gateway).

🔹 Who’s behind OHYESS?
Delivered by Business Gateway and funded by HIE and UKSPF (findbusinesssupport.gov.scot, scottishbusinessnews.net).

▫️ Can I apply for a Business Loan and OHYESS together?
Yes—loans and grants can be used for different expenses in the same project.

Value AD

2025

100% FREE

BUSINESS TOOl

What is Value Ad?

Value Ad is an innovative policy designed to foster a mutually beneficial relationship between two key groups: new businesses and service providers. This policy helps startups save significantly on essential services while enabling service providers to gain valuable traction and growth opportunities.

How is it a Win-Win Deal?

For New Businesses:

Cost Savings: Startups can save 50% to 80% on essential services such as website development and marketing. This means they don’t need to invest heavily upfront, making it easier to launch and grow their business.

Alternative Investment: The money saved through these discounts can be reinvested into other critical areas of the business, acting as an alternative investment that fuels further growth and development.

For Service Providers:

Initial Customer Base: Service providers, often tech startups themselves, can attract a significant number of initial customers by offering their services at a discounted rate. This helps them build traction and demonstrate value, which is crucial for attracting venture capital (VC) funding and other opportunities.

Marketing Efficiency: By providing affordable services, service providers do not need to spend heavily on marketing to acquire new customers. The discounted services themselves become a powerful marketing tool, bringing in customers who can spread the word and enhance the provider’s reputation.

Growth and Expansion: Attracting more customers through Value Ad helps service providers expand their client base and build long-term relationships, which can lead to increased revenue and business growth.

Alternative Investment for New Businesses:

For new businesses, the significant cost savings achieved through the Value Ad policy effectively serve as an alternative investment. Instead of spending large amounts on website development and marketing, they can leverage the affordable services provided by service providers. The saved funds can be redirected into other strategic areas of the business, enhancing overall growth and sustainability.

Benefits for Service Providers:

Service providers benefit from the Value Ad policy by gaining access to a ready pool of new customers who are drawn by the discounted rates. This initial customer base is crucial for:

Building Traction: Demonstrating product or service viability to potential investors.

Securing Funding: Enhanced customer traction and a growing user base can make the service provider more attractive to venture capitalists and other funding sources.

Market Penetration: Establishing a presence in the market quickly and efficiently without heavy marketing expenditures.

In Summary:

Value Ad is a strategic policy designed to create a win-win scenario for both new businesses and service providers. By offering significant discounts on essential services, startups can save and reinvest those savings, while service providers gain crucial initial customers and market traction. This mutually beneficial arrangement supports the growth and success of both groups, making Value Ad a powerful tool for business development and investment.

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