New £150m funding scheme launches for small businesses in Scotland
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Posted: Thu 5th Oct 2023
A £150m scheme providing loans and equity funding for Scottish small and medium-sized businesses has been launched by the British Business Bank.
The new initiative provides debt finance from £25,000 to £2m and equity investments up to £5m.
The Investment Fund for Scotland is the second of six funds being unveiled by the British Business Bank to even up regional disparities when it comes to accessing business finance. It follows the launch of a £200m fund for businesses in South West England in July.
Louis Taylor, chief executive of the British Business Bank, said:
"With this fund for Scottish businesses, we hope to open the doors to new opportunities for a range of smaller firms looking to get started, grow, and develop across different sectors.
"We know that access to finance is a key concern for small businesses and are committed to ensuring that founders from all over the country have the same prospects in terms of finance, no matter where they are based.
"Scotland is a nation of entrepreneurs and innovators and recent success stories from spin-outs and early-stage businesses show that there is huge economic potential. We want to create local opportunities and generate an impact that spans beyond the fund, helping to boost productivity, innovation and employment."
Three fund managers have been appointed to oversee the Investment Fund for Scotland.
DSL Business Finance is managing the smaller loans (£25,000 to £100,000), The FSE Group is responsible for larger loans (£100,000 to £2m) and Maven Capital Partners is managing equity deals (up to £5m).
To find out more and apply for funding, visit www.investmentfundscotland.co.uk
The British Business Bank will also launch funds of £150m, £130m and £70m for Wales and Northern Ireland later this year, while a £400m scheme for businesses in the Midlands and £660m for Northern England opens for applications in 2024.
The schemes were first announced by the then chancellor Rishi Sunak in his 2021 Autumn Budget.
Last month, the Scottish government announced a £15m support package to "unleash entrepreneurial talent from all walks of life and all parts of Scotland".
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