Energy efficiency loans for business to double to £200,000

The Carbon Trust has announced that it will double the maximum size of its interest-free energy efficiency loans from £100,000 to £200,000, enabling small businesses to implement energy saving projects on a far more ambitious scale than previously possible.

The Carbon Trust decision to double its energy efficiency loans is in response to the difficult market conditions small businesses are experiencing raising credit during the credit crunch.

This boost in funding will enable small businesses to generate 20 per cent more carbon and energy savings this year than would have been possible under the previous limit.

In addition to doubling the efficiency loans, the Carbon Trust has also increased the overall loans pot to £31 million this year. This is nearly £10 million larger than the £21.5 million allocated in 2007/08.

Loans allocated last year will reduce carbon emissions by over 60,000 tonnes of carbon dioxide each year and result in cost savings of nearly £9 million a year.

The loans, which are unsecured, interest-free and repayable over a period of up to four years, provide a cost effective way for small businesses to upgrade equipment with a more energy efficient version – thereby reducing energy bills and cutting their carbon footprint.

For more information on how to obtain funding visit the Carbon Trust website.