New fund will boost Scottish SMEs

Date: 19th March 2010

Smaller enterprises in Scotland have been handed a boost thanks to the launch of a new fund.

Alex Salmond, Scotland's first minister, has announced the creation of the £5 million East of Scotland Investment Fund, which will offer loans to smaller businesses and could see the creation of approximately 1,300 new jobs.

Speaking at the Federation of Small Businesses Annual Conference in Aberdeen, Mr Salmond said that over 430 businesses in the region will be able to apply for loans of up to £50,000.

'This new initiative will help ambitious companies and entrepreneurs get the finance needed to realise their potential and in turn contribute to Scotland's economic recovery and success,' he explained.

'This new fund will build on the package of measures this government has successfully introduced to support our business community during these challenging economic times.'

The initiative is being supported by £2 million of European Regional Development Funding and £3 million from 12 local authorities.

Earlier this month, the Scottish government updated its Economic Recovery Plan, which included improved access to finance to support growth investment.