UK Government loan fund passes £10m mark for Scottish start-up investment

The sum constitutes 4.3 per cent of the total £232m invested by the UK Government-backed vehicle, although the initiative has been going south of the Border for two years longer.

The scheme, which offers loans of up to £25,000 at six per cent per annum, with a free mentoring service available to each business it supports, has now helped 2,062 Scots to start their own business.

Tim Sawyer, chief executive of Start Up Loans Company said the £10 million mark was a “key milestone”.

Chief commercial officer, Joanna Hill, said: “We’re seeing real momentum building in Scotland.

“Recent figures show that Scottish lending has averaged seven per cent per month of the total lending value since May this year, up from five per cent in the last financial year.

“We have also recently appointed two new delivery partners in Scotland to extend our resource to potential start-up businesses, helping to ensure they have access to the capital, support and mentoring they need to succeed.”

Ms Hill added: “Small businesses play a crucial role in the economy, and will be instrumental in driving growth in Scotland.

“We believe that start-ups in their infancy play a big role in this and that’s why it’s great to see such a demand for funding from potential business owners in the country.”

Scotland Office minister Andrew Lord Dunlop said: “Business start-ups are key to driving economic growth, and delivering prosperity for families across Scotland. We hope to see more and more men and women take the leap of faith and start up on their own.”