Scottish Enterprise banks on $30.5m capital injection
Posted on 09 March, 2016 by Sam Shaw, reporter
The UK’s department for public finance, HM Treasury, is set to provide Scottish Enterprise with additional funds to create a Business Development Bank.
Scottish Enterprise is set to receive £21.5m ($30.5m) from HM Treasury to allow its investment arm, Scottish Investment Bank (SIB), to help small and medium-sized enterprises (SMEs) with greater financial backing.
The Scottish Government asked Scottish Enterprise, the country’s primary economic development agency, to submit plans for a Business Development Bank to sit within SIB, fulfilling the shortcomings in the finance market for SMEs.
Under these plans, £21.5m was assigned from the 2016-17 draft budget through financial transaction funds – those allocated by the UK’s public finance department HM Treasury to the Scottish Government.
Scottish Enterprise is due to report its plans before the end of parliament on March 23.
John Swinney, deputy first minister of Scotland, said: “I believe the best approach to creating the Scottish Business Development Bank is to enhance the remit of the SIB and for Scottish Enterprise to offer a wider range of business investment approaches, addressing some of the marketplace gaps to improve the supply of funding.
“Additional activity could include providing support to a broader number and range of businesses, offering and enabling loans, and potentially guarantees, alongside equity products, and providing an enhanced financial readiness service.”
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