• Text size      
  • Send this article to a friend
  • Print this article

After slow start, SIB off in leaps and bounds

THE £100-million-plus loan fund for small businesses set up as part of the Scottish Government's Scottish Investment Bank (SIB) initiative has taken a big stride forward after lending nearly four times more money in its second year than its first.

The news will come as a relief to the Government and Scottish Enterprise (SE) following a long period of teething troubles for the Scottish Loan Fund (SLF).

The Government had originally intended it to have £150 million and be managed by SE as part of a total £300m lending capability to be collectively known as the SIB. However, a combination of EU regulations and private-investor pressure meant that it launched in 2011 under the management of Maven Capital Partners with £94m of public-private money.

During its first year, the SLF loaned just £6m as potential borrowers reputedly baulked at the terms. including what is known as mezzanine debt, which accepts a lower place in the pecking order of a company's creditors in exchange for higher lending rates.

During the SLF's second year, which ends next month, it has loaned £17m to six companies and three more deals in the pipeline – East Kilbride-based Merson Signs and Aberdeen oil and gas support companies Rovop and Fletcher Shipping – are expected to make that £22m by the end of March.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.