£10m facility to provide funds for projects that struggle to attract private finance
The Scottish government is set to kick-start the housebuilding industry in Scotland with a £10m loan facility for housing companies who are unable to find private sector finance for infrastructure projects.
The Housebuilding Infrastructure Loans Fund has been launched to allow companies to invest in infrastructure projects such as roads, sewers, decontamination and flood remediation projects that would struggle to attract private finance.
The cabinet secretary for infrastructure and capital investment Alex Neil, said: “The house building industry has made clear that some major developments in Scotland have stalled in the current tough financial climate as the funding to build the necessary infrastructure just has not been available.
“We have listened carefully and this fund is designed to specifically target that problem and kick-start a range of developments in urban and rural communities across Scotland.”
Under the facility loans will be provided for companies to build roads or lay pipes and cables, which provide the infrastructure for new housing projects to go ahead.
Alex Neil added: “We are working hard to mitigate the effects of Westminster’s short-sighted and economically damaging capital spending cuts.”
Information about how to apply to the fund is available at the following website: www.scotland.gov.uk/hilf