East follows west with new investment fund

BUSINESSES in the east of Scotland have been given the chance to dip into a £5 million loan fund following an injection of European cash.

Up to 1,000 jobs are expected to be created over the next five years using finance available from the East of Scotland Investment Fund (ESIF).

The European Regional Development Fund (ERDF) yesterday said it would pump 1.8m into the initiative, which was set up last year by Royal Bank of Scotland and nine local councils.

New and existing small and medium-sized businesses (SMEs) can borrow up to 50,000 to fund up to 50 per cent of their set up or expansion costs.

RBS last year pumped 1.5m into the fund, with the nine councils - Angus, Dundee, Edinburgh, Falkirk, Fife, Midlothian, Moray, Perth & Kinross and West Lothian - providing a further 1.7m between them.

ESIF chairman George Sneddon said: "This additional money is vital to safeguard and create jobs, support businesses through this particularly difficult period and ensure local economies benefit from successful businesses."

The east coast fund is modelled on a similar project that has been running for the past 14 years in the west of Scotland.

Enterprise minister Jim Mather added: "Accessing affordable new finance remains a challenge for some small and medium sized businesses, which is why initiatives like the ESIF are so important. I am delighted that we have been able to direct 1.8m from the ERDF to this initiative."