More small businesses will now be able to take out a Scottish Government loan to cover up to 100 per cent of the cost of increasing their energy efficiency.

The Energy Saving Scotland small business loans (formerly known as Loan Action Scotland) will be extended to private landlords and agriculture and transport companies. Catering and manufacturing firms are already covered by the scheme.

Loans can be taken out from £1,000 to £100,000 for introducing energy saving measures or installing energy efficient technologies such as wind turbines. The Energy Saving Trust will run the scheme hand-in-hand with the five Energy Saving Scotland advice centres.

"One of the easiest ways to save money is to save energy and this Government is providing maximum support to small and medium sized enterprises while investing in a greener future," Enterprise Minister Jim Mather said.

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"In line with our economic recovery plan, more small businesses will now get the best advice and access to interest free loans for energy efficiency measures.

"As part of the roll-out of energy performance certificates, landlords will need to provide a certificate for new tenants from January. They can now access interest free loans to reduce tenants' bills and improve the energy performance of our housing. Better energy efficiency is crucial if we are to achieve our ambitious emissions reduction targets."

Landlords in Scotland will be required to show tenants a survey of any property's energy efficiency from January 4, which will offer an efficiency grading from A to G, similar to that available for household appliances.

John Blackwood, director of the Scottish Association of Landlords, argued the loan scheme to be a welcome way of facilitating the change to the new system of certificates.

"Landlords are always looking for ways to improve their properties, and access to interest free loans for energy efficiency will give tenants a warmer home - and cheaper fuel bills.

"This move could also help improve the energy efficiency of thousands of properties and will be warmly welcomed by landlords," he added.

Scottish Government funding for the loans project will total £2m for the year.

(GK/JM)