The Scottish Investment Bank will provide mezzanine loans of up to £5 million to growing and exporting Scottish companies that have up to 250 staff and an annual turnover of more than £1 million. Public sector funding from the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise and the European Regional Development Fund (ERDF) back the newly launched fund.

Scotland Finance Secretary John Swinney says the fund has been created to meet the increasing demand for finance for SMEs.

He adds, ‘Scotland’s economy is strengthening. We are the only nation in the UK with rising employment and falling unemployment. After a shorter and shallower recession than the UK as a whole, the latest GDP figures show growth continuing to take hold.’

According to a Maven statement, the fund’s size could be expanded with private sector commitments currently under discussion. It is open to businesses of any sector. Applicant businesses should have sustainable operating profits, positive cash generation and operate in growth or export markets.

Andrew Craig, partner at Glasgow-based Maven, comments: ‘Given the challenging conditions for the economy, there is a clear need for this type of funding and our current Scottish-based investment team is very much open for business and looking forward to working in partnership alongside Scottish SMEs.’