Boosting Scottish Small Businesses: The Launch of the £150 Million Investment Fund
The British Business Bank is launching a brand-new £150 million Investment Fund for Scotland today, October 5th. This initiative will provide a significant financial boost, unlocking opportunities for smaller enterprises to prosper and thrive.
Unlocking New Avenues for Small Businesses:
The Investment Fund for Scotland is designed to foster sustainable economic growth by offering crucial support to both new and expanding businesses throughout the entire country. It aims to accomplish this by tailoring investment strategies to meet the unique needs of these enterprises. The fund offers a diverse array of financial options, including loans ranging from £25,000 to £2 million and equity investments up to £5 million. This wide spectrum of financial support is intended to help small and medium-sized businesses initiate operations, scale up their activities, or maintain a competitive edge in their respective industries.
A UK Government-Backed Initiative:
One of the most notable aspects of the Bank's Investment Fund for Scotland is that it marks the first-ever UK government-backed investment fund dedicated solely to supporting smaller businesses in Scotland. This landmark move is set to significantly enhance the availability and variety of early-stage finance options, extending a lifeline to firms that might otherwise struggle to secure investment.
Supporting Diverse Business Endeavors:
The fund's primary goal is to support businesses in a multitude of ways, including expansion, innovation in products or services, the development of new processes, skill enhancement, and the acquisition of essential capital equipment. This comprehensive approach shows the fund's commitment to fostering holistic growth and development within Scotland's small business ecosystem.
Expert Fund Management:
To ensure the efficient allocation of funds and expert guidance, the British Business Bank has appointed three trusted fund managers:
- DSL Business Finance: Responsible for managing smaller loans ranging from £25,000 to £100,000.
- The FSE Group: Tasked with overseeing larger loans in the range of £100,000 to £2 million.
- Maven Capital Partners: Managing equity investments of up to £5 million.
These experienced fund managers bring a wealth of knowledge and expertise to the table, further strengthening the fund's potential to drive positive outcomes for small businesses in Scotland.
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.”
Scottish Secretary Alister Jack said:
“It’s great news that the British Business Bank is launching its new £150 million Investment Fund for Scotland. This funding boost will be hugely important in giving smaller Scottish businesses the investment they need to grow. Scotland has some fantastic business success stories, and this new, additional fund will help create even more of them.”
Following today’s launch, the British Business Bank will be holding a series of information roadshows aimed at people working in the small business finance ecosystem including enterprise agencies, advisers, accountants and more. The first of these will be held in Inverness on 31 October with the second in Edinburgh on 1 November. More towns and cities will be covered in the new year and an online version of the session will also take place on 7 November.
To find out more and apply for funding, visit: www.investmentfundscotland.co.uk
