Cash-strapped Scottish Premiership clubs set to receive interest-free crisis loans

The SFA have struck a deal with the Scottish Government to hand out interest-free crisis loans to cash-strapped Premiership clubs.

And, in act of clemency towards top flight teams, the cash will be repayable over a 20-year period with nothing to pay back until 2022.

The governing body are set to confirm an agreement following weeks of intense negotiations between chief executive Ian Maxwell and Holyrood officials.

Scottish Premiership clubs will be entitled to apply for immediate loans of £1.6million each

Top flight clubs will now be entitled to apply for immediate loans of £1.6million each as part of an emergency rescue package for Scottish sport unveiled before Christmas.

While clubs from the Scottish Championship down were handed one-off survival grants, Premiership teams were promised access to a £20m loan package — the small print of which has taken weeks to thrash out.

Sportsmail understands clubs have been informed of a deal now being struck, with an announcement imminent

The Covid-19 crisis has starved clubs of income through the gates from supporters or hospitality. And, with growing doubts over a return date for fans, the delay has pushed some Premiership clubs close to crisis point.

Aberdeen and Dundee United are understood to have indicated interest in seeking loans

Speaking earlier this week, Dundee United sporting director Tony Asghar claimed Premiership clubs had been cast aside by the government, saying: ‘Championship clubs were given £500,000 as a nice Christmas present, but clubs like ourselves need money because we don’t have any income from supporters.

‘Without it sounding like a party political broadcast, I think we have been cast aside.

‘I have been in meetings with the government when they have talked about clubs. They are effectively thinking of working-class males who come to the football, drink beer, shout abuse and maybe fight later on. That’s what they think of Scottish football.’

In a video message to fans on Twitter, Aberdeen chairman Dave Cormack also painted a gloomy picture of the club’s finances when he said: ‘I’m asking you to be patient and the reason I’m asking you to be patient is because right now my focus, the board’s focus, the management team’s focus, is on the financial sustainability of the club because we’ve still got hardly any income and who knows when income will come back?

The continued absence of fans in stadiums is starving clubs of much-needed financial income 

‘Will we be able to announce a new season that’s going to start in August of this year?

‘This great club has never gone bust in 117 years and it’s certainly not going to do so on my watch, without us pulling out all the stops to get through this.’

Sportsmail understands Dundee United and Aberdeen are two of a projected six clubs who have indicated an interest in seeking loans. While every club in the top tier can access £1.6m, some may be able to claim access to higher sums if others decide against applying for their share of the £20m.