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Four businesses attract over GBP5m from the Scottish Loan Fund

Four more businesses are benefiting from GBP5m of funding from the Scottish Loan Fund with the option to drawdown up to GBP9m.

A total of GBP15m has now been committed to growth and exporting Scottish companies since the fund was launched.

Improving access to finance to support company growth and export is a key element of the Scottish Government’s economic strategy. The SLF was established by the Scottish Investment Bank, a division of Scottish Enterprise, to help address a specific funding gap in the SME market across Scotland. The fund assists businesses that cannot access additional bank debt to support growth plans.

Managed by Maven Capital Partners, the SLF offers finance of between GBP250,000 and GBP5m to Scottish-based growth or export businesses. The fund, originally capitalised at GBP94m, has recently completed its second and final close, with GBP19m of additional private sectors commitments, taking the total fund size to GBP113m.

Alongside a recent investment in an established Aberdeen-based energy services business, the three other companies receiving support from the fund are Booth Welsh Automation, Red Spider Technology and ROVOP.

The SLF is providing working capital to Red Spider Technology. North-east based Red Spider manufactures and supplies a range of unique remotely operated well-intervention and completion tools to the international oil and gas industry. The company has been working with Scottish Enterprise and Scottish Development International in recent years to increase its international trade with a focus on Europe and Asia.

Ayrshire-based engineering services firm Booth Welsh Automation (BWA) has also secured funding to help deliver its next phase of growth. The business employs over 200 people at its Stevenston base and the SLF investment will be used to provide additional working capital to help fund the forecast growth in new contracts.

Another business which is supported by Scottish Enterprise and receiving SLF funding is ROVOP, an independent specialist operator of remotely operated vehicles (ROVs) servicing the offshore oil and gas and renewable sectors. The business is seeing a high level of enquiries and tender opportunities, and the SLF funding will provide working capital for the acquisition of additional ROVs to be used in fulfilling long term wind farm contracts recently secured with major international marine contractors.

John Swinney (pictured), Cabinet Secretary for Finance and Sustainable Growth, says: “The Scottish Government and our enterprise agencies are providing the supportive business environment that will allow our small and medium sized companies to unlock new investment and secure affordable finance. I am encouraged to see that an additional four businesses are benefiting from the Loan Fund. We will continue to assist innovative, high growth firms as part of our drive to build sustainable economic growth for Scotland."

Andrew Craig, partner at Maven, says: “We are encouraged by the quality of enquiries we continue to receive for the Scottish Loan Fund and Booth Welsh, Red Spider and ROVOP are the type of businesses for which the SLF was established, with innovative product offerings, strong growth strategies and ambitious management teams which will help contribute to their success.”

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