Hibs secure seven-figure Covid loan as club take up government support scheme
Hibs have secured a seven-figure loan from the Scottish Government to help them deal with the Covid crisis.
The financial support — part of an emergency funding package agreed between the Scottish FA and Holyrood — was made available to all 12 Scottish Premiership clubs, with Hibs taking out a credit facility of £2.882m.
This was the fourth highest amount taken out in the Scottish Premiership behind Rangers, who borrowed the most at £3.2m, Aberdeen, who claimed £3.1m, and Motherwell, who banked £2.9m, according to figures released by The Sun.
Celtic were the only top flight club not to take up the offer with the other 11 clubs borrowing a total of £25.262m.
The loan, which is interest-free, is repayable over 20 years with no repayment due until September 2022 at the earliest. This would mean Hibs would pay back £144,000 per year until 2044 if they chose to repay the full amount over the full term.
The money will be used to help the Easter Road side absorb losses both incurred and projected during the course of the pandemic as well as cover the additional financial burden of weekly testing.
A Holyrood spokesperson said: “The Scottish Government responded to requests from top-flight clubs to provide financial support as they faced unprecedented losses and an uncertain future at the height of this pandemic.
“All 12 top-flight clubs were invited to apply for a share of the initial £20 million Premiership Division Support Fund. Each club’s share was capped at the total losses and additional costs which clubs faced as a result of the pandemic.
“The amount of loan funding was increased to £25 million this year.
“This money formed part of the £55 million Emergency Sports Fund put in place by the Scottish Government because of the pandemic.
“No club received any more than their losses as a result of the pandemic. As clubs will have different outlays and running costs, the value of the loans varied between clubs.
“It is important to note that these are loans which will have to be repaid by all borrowers over an agreed timescale.
“The Scottish Government is providing the top-flight clubs with a credit facility.
“But not all clubs have fully drawn down on their credit facility yet and they have until July 31 to do so.”