Scottish Growth Scheme – Investing in Ambition

The Scottish Government wants to see Scotland foster a much broader range of young growth-oriented SMEs, with companies readily accessing the investment they need to fund grow and achieve their exporting and other ambitions.

The £500 million Scottish Growth Scheme, a Scottish Government initiative, provides a range of commercially focussed finance to help viable small and medium sized enterprises (SMEs) in Scotland to start-up, grow and scale up. A number of new funding options (microfinance, debt and equity) are now available under the Scheme for Scottish SMEs.)

Scottish Growth Scheme is now providing  a range of financial funding for SMEs including:

  •  microfinance (up to £25k);
  •   debt (£25-100k, and £250k -£2m);
  •   equity  (up to £2m, and £2m-£10m).

These funding options can help in a number of ways, for example by:

·        Providing funding to get your business started

·        Funding innovation and expansion projects

·        Purchasing new machinery or equipment

·        Leasing new commercial premises

·        Expanding into overseas markets.

FUNDING OPTIONS

Ø  MICROFINANCE 

Small business loans from the ‘Scottish Microfinance Fund’ under the Scottish Growth Scheme. Loans of up to £25,000 to help new businesses start up, or established businesses grow. Fund Manager:

·         DSL Business Finance Ltd     www.dsl-businessfinance.co.uk

Ø  DEBT FINANCE

Business loans £25,000 to £100,000 for early or more established businesses that can demonstrate growth and exporting potential. Fund Managers:

·         Business Loans Scotland   https://www.bls.scot

·         BE Group Debt Finance Scotland www.begroupfinance.scot.

·         Scottish Enterprise – £250k to £2m range (and up to £5m in exceptional circumstances)

Ø  EQUITY FINANCE

Equity funding (up to £2 million as part of rounds of up to £10m) from VC Fund Managers:

·         Foresight Group

·         Techstart Ventures  https://www.techstart.vc/

Later stage equity funding (£2 million to £10 million):

·         Scottish-European Growth Co-investment Programme delivered by Scottish Enterprise through the Scottish Investment Bank, in partnership with the European Investment Fund. 

WHY APPLY?

The Scottish Growth Scheme funding options can help you establish or grow your business in a number of ways, for example by:

·         Providing funding to get your business started

·         Funding innovation and expansion projects

·         Purchasing new machinery or equipment

·         Leasing new commercial premises

·         Expanding into overseas markets

HOW TO APPLY?

1.       Make an enquiry direct to any of the Fund Managers listed above

2.       The Fund Managers will contact you to see if your business qualifies

3.       You make a formal application

4.       The Fund Manager evaluates your application and makes the investment decision

Businesses in a variety of sectors (such as software development, textiles, energy, multimedia, fintech and healthcare) have already been supported under the Scottish Growth Scheme. Advice and support for SME’s seeking to access finance is available from Business Gateway.

Bear in mind that finance is not automatic: be prepared to justify your  business case and provide the necessary evidence that your plans are achievable and likely to grow your  business.