UK bank launches £650m Scottish SME fund

A £650 million fund to support small and medium-sized enterprises (SMEs) in Scotland has been launched by HSBC.

The bank says the cash, which is part of a larger UK-wide fund, will help British businesses grow as the country looks to rebound from the Covid-19 health crisis.

The fund also includes increased ring-fenced pots for businesses trading internationally (£2 billion), the agriculture sector (£1.2bn) and tech sector businesses (£500m).

Despite the challenging economic environment, 62% of UK businesses intend to increase investment in the next year, according to research from HSBC.

More than 70% of UK businesses expect to have returned to prepandemic levels of profitability by the end of 2022 and a fifth by the end of this year and nearly half of British companies (49%) are projecting sales growth.

Peter McIntyre, head of small business banking at HSBC UK, said: “With the vaccine rollout there is light at the end of the tunnel and businesses in Scotland are starting to look ahead again.

“We’ve helped British business get through the last year with more than £14bn of Covid-19 lending support.

“Now it’s time to turn our minds to what comes next and how we help companies grow again, opening up a world of opportunity and contributing towards a sustainable future society.

“We know our customers are innovating and adapting at pace and British businesses tell us that through these uncertain times they need their bank to be flexible, provide funding when they need it most and to support future growth opportunities.”