How to Apply for Carbon Trust Business Loans
The Carbon Trust provides businesses with 0% business loans for projects that provide carbon savings for many types of company transformation exercises. Here’s information on what you can apply for and how to get the loan.
The Carbon Trust company was set up in 2001 by the UK government to provide information and support to independent businesses and the public sector to cut day to day carbon emissions, utilise low carbon technology with an overall goal of saving energy from non renewable sources.
You can now apply for business loans from the Carbon Trust up to £500,000 for various projects in your company that will meet their criteria of reducing carbon emissions from your organisation.
The Carbon Trust Business Loan in a nutshell
You can apply for a completely interest free 0% unsecured business loan for any amount from £3,000 to £500,000 so long as the project you have earmarked will save at least 1.5 tonnes of CO2 each year. Of course you will need to apply and complete various forms in order to progress this part but if your business is looking to up date or replace old technologies that will save carbon emitted from your organisation then this might be for you.
The types of projects that qualify
Really there are many types of projects that will qualify for the unsecured loan from the Carbon trust and so long as they meet the criteria of reducing your carbon emissions then you should be able to use this scheme. Examples of projects including replacing and/ or upgrading air conditioning systems, old boilers and heating systems and controls, building and general insulation, office and warehouse lighting or installing new technologies such as solar or heat exchange systems.
How to apply for the loan
Your company can apply for the Carbon Trust loan by either downloading and completing the application form or completing it online via their website. You’ll need some information which can be detailed but will include such items as company registration details and registration number, verify that your business doesn’t currently qualify under the carbon reduction commitment programme and it is an SME business (defined as a business with less than 250 full time employees with less than €50 million in turnover)
Your company should also be trading for at least 12 months and in the private sector – different arrangements apply for public companies.
You’ll then need to have some information on how much energy is being used by the system or equipment you want to replace and the same for the new installation together with anticipated cost savings of undertaking the project. Then you’ll need pricing and information about your elected supplier together with their company registration details and the equipment to be installed.
You can see the exact type of information you’ll need to collect by having a look at the online application form here which is a separate website from the main carbon trust information site.
Some businesses do not qualify
As part of this scheme it is based upon what is known as the De Minimis Block Exemption Regulation which means there are certain sectors that can not apply for interest free business loans and these sectors include agricultural, fisheries and aquaculture, export related, transport and coal sectors. If you want to check if your business is in these sectors then give the Carbon Trust a call about their loans.
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