Scottish Growth Team: FOI release
- Economic Development Directorate
- Part of
- Economy, Public sector
Information request and response under the Freedom of Information (Scotland) Act 2002.
FOI reference: FOI/17/02188
Date received: 28 September 2017
Date responded: 26 October 2017
- The business case for the Scottish Growth Scheme (SGS);
- The number of applications for funding that have been made to the SGS to date;
- The text of these applications where possible, and the funding allocated;
- Whether any applicants have received funding from the SGS; and
- Whether any bids for funding have been made to the SGS from the public sector.
The answers to your questions are:-
Q1. The business case for the Scottish Growth Scheme (SGS).
The work that has emerged on the Scottish Growth Scheme has been an evolution of our evidence based policy consideration in addressing access to finance for SMEs, which includes activity set out in previous Programme for Government announcements and informed by research evidence, including the published report in August 2015 on the Market for SME Finance in Scotland SME Finance in Scotland
When the Scottish Growth Scheme was announced, it was clearly indicated that work would be undertaken to develop and design it, working with financial institutions, and our enterprise agencies. It is important to get the structure right to meet the different needs and ambitions of Scotland's businesses. The first tranche of this work was completed with the introduction of the £200m Scottish-European Growth Co-investment programme on 16 June this year, aimed at companies seeking equity investment of £2m or above. Details on the Programme can be found here Scottish Growth Scheme
The second tranche of the SGS, additional ERDF resources for the SME Holding Fund under the scheme has also been announced (Programme for Government 2017) to support equity funding up to £2m.
We are working with partners to develop and deliver a number of solutions to provide a range of equity, loan and guarantee products to help companies grow under the umbrella of the Scottish Growth Scheme.
Q2. The number of applications for funding that have been made to the SGS to date.
Under SGS, the Scottish European Growth Co-Investment Programme, eligible companies will have access to £50 million from Scottish Enterprise and £50 million from the European Investment Fund, which will leverage at least £100 million from private sector fund managers. The aim of this fund is to increase the availability of later stage equity investment available to Scottish SMEs. Through this programme, Scottish Enterprise can invest a maximum of £5 million into any one company.
To date there are:
- 10 live enquiries with ongoing discussions, 5 are currently passed to the European Investment Fund (EIF) for relevant investors to be identified, and
- A further 3 have been introduced to investors and are engaging in direct discussions with them.
- In addition one company had commenced discussions with investors prior to the launch of this programme, and these discussions are now at an advanced stage.
Q3. The text of these applications where possible, and the funding allocated.
Applications arising from these enquiries and in the interests of the individual business involved, and accredited EIF Venture Capital Fund Mangers would not be directly shared with the Scottish Government. It is the European Investment Fund that will manage the resources allocated under the programme. Discussions on a number of applications for funding are ongoing, but are not yet concluded.
Q4. Whether any applicants have received funding from the SGS.
The decision to invest in individual companies is a matter for the companies concerned and the EIF accredited Venture Capital Fund Mangers. Discussions on a number of applications for funding are ongoing, but are not yet concluded.
Q5. Whether any bids for funding have been made to the SGS from the public sector.
No bids for funding have been made to the SGS from the public sector. However Scottish Enterprise is involved in operational delivery, for example in advising companies before they approach the individual EIF accredited Venture Capital Fund Managers.
The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses
Please quote the FOI reference
Central Enquiry Unit
Phone: 0300 244 4000
The Scottish Government
St Andrew's House
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