20 Jun 2017

Double funding boost for businesses looking to expand

Double funding boost for businesses looking to expand

Scottish firms wanting to expand have received a double boost potentially worth hundreds of millions of pounds in separate initiatives from the Scottish Government and HSBC bank.

In its announcement, the Scottish Government said that companies looking for significant investment will now be able to access an additional £200million through the Scottish-European Growth Co-investment Programme.

The programme is the first part of the Scottish Growth Scheme, a £500million financial package backed by the Scottish Government, to help businesses thrive and grow.

Cash

Made up of £50million from Scottish Enterprise and £50million from the European Investment Fund (EIF), the programme is expected to lever over £100million from fund managers across Europe for investment in Scottish firms.   

With advice and support from the Scottish Investment Bank, companies will be able to seek investment from EIF-accredited fund managers.

Finance Secretary Derek Mackay said: “The foundations of Scotland’s economy remain strong, however we will continue to do all we can to invest further in our economy and stimulate growth.

“This new multi-million pound programme, the first under the Scottish Growth Scheme, is specifically designed for companies seeking large equity investment to support their growth plans.  The new programme will open up a new pool of potential investors from across Europe.  We want our businesses to be able to expand and create more job opportunities and the new programme will provide considerable investment.”

Lending fund

Meanwhile, HSBC announced it has launched a £10billion lending fund to support small and medium-sized enterprises in the UK, as part of a broader commitment to helping British businesses to realise their ambitions for growth. Scotland has been allocated £500million.

Ian Stuart, UK chief executive of HSBC, said: “The launch of this £10billion fund reaffirms our commitment to support the growth of UK SMEs of all s, from start-ups to established businesses.

“The UK is home to a diverse range of SMEs across established and emerging sectors, operating in their regional markets or looking to trade internationally. We want to put SMEs in a stronger position to make investments that will stimulate local economies and create more jobs.”

A key focus of the fund is to encourage small businesses to feel confident about exploring opportunities for exporting.

SME support

Ritchie Whyte, a Corporate and Business Advisory Partner at Aberdein Considine, has welcomed the finance package.

"Access to capital is one of the biggest issues faced by small and medium-sized business, so anything which increases the diversity of funding options available to business owners is good news."

Aberdein Considine offers a full legal service the small businesses across Scotland. If you would like to speak to Ritchie or a member of the Corporate team, please call 0330 3344 333 or click here.


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