New lending for SMEs in the East of Scotland will create 1000 jobs

 

Originally published: 2/8/2010

A new East of Scotland Investment Fund has been launched to lend £5million to help businesses create 1,000 new jobs throughout the east of Scotland.

The East of Scotland Investment Fund (ESIF) is a consortium of nine local authorities located in the east of Scotland and provides loan finance to new and growing small and medium sized enterprises (SMEs).

ESIF is modelled on the successful West of Scotland Loan Fund which has earned an outstanding reputation for assisting businesses over the last 14 years when other conventional sources of funding have not been able to fully fund projects.

ESIF secured funding of £1.78m from the European Regional Development Fund and a private sector contribution of £1.5m from the Royal Bank of Scotland. A further £1.72m has been provided by the nine member authorities.

This significant increase in new resources for the east of Scotland will allow ESIF to increase the supply of loan finance to new and growing SMEs.  It will also directly improve the business birth rate and growth potential of those supported, as well as making a major contribution to job creation.

George Sneddon, Chair of the East of Scotland Investment Fund Limited said: “It is well known and documented that access to finance remains a major hurdle to many SME’s who need to develop and grow. With this new resource, the fund will contribute significantly to the east of Scotland business community.”

The Fund provides loan finance up to £50,000 to new and growing SMEs across the east of Scotland for loan periods of up to 5 years.

The Fund’s target over the next five years is to support 333 businesses, safeguard 667 existing jobs and create 1,000 new jobs. The businesses supported by the fund will generate an additional £26m of sales for the area.