The British Business Bank has announced a new fund for Scotland. The Investment Fund for Scotland will include £150 million in funding to assist smaller firms.
The fund will provide loans from £25,000 to £2 million and equity investments up to £5 million. This is the first government-backed fund for smaller firms in Scotland.
According to the statement issued by the bank, three fund managers have been selected including DSL Business Finance, which will manage the smaller loans part of the fund (£25,000 to £100,000), the FSE Group will be responsible for larger loans (£100,000 to £2 million), and Maven Capital Partners will manage equity deals (up to £5 million).
Louis Taylor, Chief Executive of the British Business Bank, noted that Scotland is a nation of entrepreneurs, and they want to create local opportunities and generate more impact that will boost innovation and the economy.
The Investment Fund for Scotland is the second in a series of six new Nations and Regions Investment Funds being launched by the Bank and follows the launch of the South West Investment Fund in July. A total of £1.6 billion has been committed to the new funds so far.
The British Business Bank will hold a series of roadshows aimed at people working in the small business finance ecosystem with the first held in Inverness on 31 October with the second in Edinburgh on 1 November.