How does it work?

EUF involves a three-way agreement between the business owner, council, and lender, called an Environmental Upgrade Agreement (EUA). It provides an incentive for building owners to upgrade their infrastructure and improve the value of their property. If the property is leased the building owner can easily share the repayments with their tenants, allowing tenants to benefit from reduced operating costs, and owners to improve the value of their asset.

The key features of EUF that make it different to traditional finance are:

Fixed interest, quarterly repayments made via a local council charge
Up to 100% project finance, including hard and soft costs
Loan terms can extend from 5 to 20 years to maximise business cashflow
Loans are tied to the building, not the business owner, making them easily transferrable if the building is sold
Landlords can split repayments with tenants, with both parties benefiting from the upgrade
No requirement for personal, business or other forms of security to be provided