SCOTTISH INVESTMENT BANK WILL BOOST JOBS AND BUSINESS

SCOTTISH INVESTMENT BANK WILL BOOST JOBS AND BUSINESS

NEW SOURCE OF BUSINESS LOAN FUNDS TO GIVE SHOT IN THE ARM TO INVESTMENT AND ECONOMIC RECOVERY
Rob Gibson MSP has welcomed the announcement today by First Minister Alex Salmond of a £50 million investment in the new Scottish Investment Bank (SIB) to develop a loan fund for Scottish growth and export businesses.

The First Minister told STUC Annual Congress in Dundee that the £50m would be added to the existing £150m of support previously earmarked to be brought within the Scottish Investment Bank.

SNP Highlands and Islands MSP Mr Gibson, who is also deputy convener of the Scottish Parliament’s Economy Committee, said:

“The failure of the banks to restart lending to businesses, and the failure of the UK government to make this a clear condition of the bank bail-out, has acted as a drag on economic recovery and business development.

“This very welcome announcement by the First Minister of the new loan facility is a demonstration of the SNP’s determination to do everything we can within the powers available to us to get Scotland’s economy moving, help businesses to grow and protect and create jobs.

“By putting its money where its mouth is, the SNP government is showing its faith in the ability of Scottish businesses to contribute to Scottish recovery and growth – and setting an example to the banks and financial institutions that they must do the same.”

ENDS
Notes:
1. The Scottish Investment Bank loan fund comprises £20 million in ERDF resources matched with £20 million from Scottish Enterprise and a £10 million allocation from Scottish Government spring budget revisions that was announced in February.

2. The loan funding aims to provide, by the end of the year, mezzanine-type loan products, targeted mainly at the needs of growth and exporting businesses that are not being met by banks or other private sector sources. It will complement existing public sector finance sources such as the long-established West of Scotland Loan Fund and £5 million East of Scotland Investment Fund, announced last month, to support local business growth and job creation.

3. Ensuring improved access to finance to support investment for growth is a key element of the Scottish Government's Economic Recovery Plan. Work is underway across the public sector to deliver that plan, accelerate recovery and improve the long term performance of Scotland's economy.