THE importance of the European Union to the economy of Scotland was shown yesterday when the Scottish Government claimed that 2,000 jobs would be created over the next two years by small businesses using EU funds.
By December 2018, some 500 small and medium-sized enterprises (SMEs) will receive European Regional Development Fund investment worth £40 million to help transform their innovative ideas into economic success stories. The cash will be allocated through the Scottish Government’s new SME Holding Fund and will give companies access to microcredit finance of up to £25,000, or loans of up to £100,000 and equity investment of up to £2m.
The investment will also support a trade body aimed at encouraging investment in young, innovative Scottish companies.
According to a Government statement, “the Holding Fund’s £40m will be matched by an additional £60m from public and private sector delivery partners, alongside private sector funding of £150 million so that at least £250m is invested in 500 companies by December 2018, creating 2,000 jobs”.
The SME Holding Fund is managed by the Scottish Government, though applications for support should be made directly to one of three ‘delivery agents’: DSL Business Finance Ltd, which provides loans of up to £25,000 to businesses with less than 10 staff through the Scottish Microfinance Fund; Business Loans Scotland, which acts as a local authority hub providing loans of up to £100,000 to SMEs; and Scottish Enterprise, which provides equity finance of up to £2m in young, high-growth SMEs.
Business advisory agency LINC (Scotland), which develops and grows business angel syndicates, is also a partner in the scheme.
Cabinet Secretary for Economy, Jobs and Fair Work Keith Brown confirmed the funding on a visit to start-up business Cafe Bellina in Edinburgh.
He said: “SMEs represent 95 per cent of businesses. It’s crucial that we do all we can to help them thrive so we can boost economic growth – our Small Business Bonus has already delivered more than £1 billion in savings for the sector.
“The new SME Holding Fund represents a great opportunity for business people seeking to get their ideas off the ground.
“The £40m investment will benefit a broad range of businesses and is projected to create 2,000 jobs.
“It is yet another example of exactly why maintaining Scotland’s relationship with the EU is so important, as set out in our document Scotland’s Place in Europe.
“It outlines our determination to keep Scotland’s place in the European Single Market.”
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