Extra £100m for smaller Scots businesses

Scottish Enterprise HQ

Small and Medium Enterprises (SMEs) across Scotland will be able to access more than £100 million to help them expand and access investment through the next phase of the Scottish Growth Scheme.

Through a variety of appointed fund managers, SMEs can apply for financial support including microfinance loans of up to £25,000, debt or loan finance of up to £100,000, and equity investment in deals of up to £2 million.

As part of this phase of the initiative, Scottish Enterprise has also introduced a loans scheme in the range from £250,000 to £2 million, or up to £5 million in exceptional circumstances “for growth-focused SMEs with a viable business plan and a clear ability to repay the debt.”

Since launching in 2017, the Scottish Growth Scheme has invested £106 million in 82 companies.

Economy Secretary Derek Mackay said: “This next phase of the Scottish Growth Scheme will unlock substantial investment for the most ambitious of new and existing businesses, helping them scale-up for the future.

“Amid the uncertainty of Brexit, it’s important that the wider business community remains confident that access to finance should not hinder their ambition or growth.

“This direct investment will boost the economy and give even more companies access to vital capital.”

The five fund managers involved are:

  • DSL Business Finance Limited – a not-for-profit microfinance lender in Glasgow, providing loans up to £25,000.
  • Business & Enterprise Scotland Ltd – an employee-owned business in Edinburgh with a track record in investing to SMEs across the UK, providing loans from £25,000 to £100,000, trading as BE Group Debt Finance Scotland.
  • Business Loans Scotland – local authorities consortium, providing loan finance of £25,000 to £100,000.
  • Techstart Ventures – an early stage venture capital fund manager providing equity investment of up to £2 million for young, innovative companies.
  • Foresight Group – an infrastructure and private equity investment manager providing equity investment of up to £2 million as part of rounds of up to £10 million per company.

SMEs seeking to explore this funding should contact the relevant fund manager or contact Scottish Enterprise directly.