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Backing for small businesses
19/03/2010
First Minister Alex Salmond today announced the creation of a £5 million East of Scotland Investment Fund which will offer loans to businesses and could create around 1,300 new jobs.
Speaking at the Federation of Small Businesses (FSB) Annual Conference in Aberdeen, the First Minister said the £5 million fund will offer more than 430 East of Scotland growth businesses access loans of up to £50,000. The fund has the potential to generate increased turnover of £34.56 million in small and medium sized enterprises and could create approximately 1,300 new jobs.
The initiative will be supported by £2 million in European Regional Development Funding (ERDF) and £3 million of funding from the 12 local authorities deliver the scheme: Fife, Aberdeen, Angus, City of Edinburgh, Clackmannanshire, Dundee, Falkirk, Fife, Midlothian, Moray, Perth & Kinross, Stirling and West Lothian.
First Minister Alex Salmond said.
"The Scottish Government is doing all we can to ensure the economy recovers strongly by harnessing all our economic levers to support businesses and to create and safeguard jobs across Scotland.
"I am delighted to announce the creation of a #5 million East of Scotland Investment Fund to provide eligible businesses access to local 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.
"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.
"Business rate relief, including through the uplift and expansion of the Small Business Bonus Scheme, will mean reduced or removed business rates for half of all Scottish businesses next year. This year the Small Business Bonus alone will save small businesses an estimated £100 million.
"This Government has introduced the most comprehensive apprenticeship support package in the UK to ensure that Scotland's workforce has the skills and experience required to secure investment and deliver success. Our Invest in an Apprentice scheme has been aimed specifically at addressing the needs of smaller businesses.
"We have also introduced measures to ensure businesses are paid for their services within ten days and a recent survey by the Federation of Small Businesses and ICM shows that over the last year almost 90 per cent of small firms working with the Scottish Government had been paid within this period.
"This Government is committed to working with our partners in local authorities, enterprise networks, voluntary sector, business community, unions, colleges and universities to ensure Scotland is an attractive environment for business.
"This new initiative will reinforce Scotland's reputation as a first class destination to do business and ensure small businesses can access the finance required to be at the forefront of their field."
The FSB's Scottish Policy Convener, Andy Willox OBE, said:
"Getting fair access to affordable finance is one of the top issues being raised at the FSB's annual conference here in Aberdeen.
"Anything which broadens the range of finance options available to small businesses and gives some real competition to the big high street banks will help us get on with the job of leading Scotland back to growth."
Local debt finance currently exists in the west, south and highland areas of Scotland through the West of Scotland Loan Fund and The Opportunity Fund.
The FSB is a leading business organisation with over 20,000 members in Scotland. It exists to protect and promote the interests of the self-employed, and all those who run their own business. The FSB's Annual Conference allows businesses from all over the country to come together and debate their most pressing issues.