The Carbon Trust is set to double its interest-free energy efficiency loans, it was announced today.
The organisation said the scheme would mean small businesses struggling during the economic downturn would be able to implement energy saving projects, even if they are struggling for credit.
The Trust said they have increased the amount of money in the loans pot by 45% to £31m this year. Businesses will be able to borrow up to £200,000 interest-free, repayable over a period of up to four years.
The higher rate is expected to lead to an increase in applications from larger, energy-intensive projects, where the loans can fund a ‘greater proportion of the total project cost’.
Hugh Jones, solutions director at the Carbon Trust, said the current economic climate is making it harder for small businesses to tackle climate change.
“We know that some companies found that the £100,000 limit made it hard for them to finance the more ambitious projects they wanted to invest in, such as large lighting installations, boilers projects, or multiple equipment purchases such as variable speed drives with compressors and heat recovery equipment,” he said.
“£200,000 loans pave the way for companies to take on such projects and significantly reduce both their carbon emissions and energy bills, which in turn will enable them to reduce operational costs and become more competitive.”
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