Scots SMES get £1.2m boost from business lending group

● Business Loans Scotland backed by local authorities ● Lanarkshire swim teaching firm among recipients

A lending venture formed through a consortium of Scottish local authorities has awarded more than £1.2 million in funding to help support 20 fast-growing businesses.

Building on three previous loan funds – the West of Scotland Loan Fund, the East of Scotland Investment Fund and the South of Scotland Loan Scheme – Business Loans Scotland aims to provide an investment stream to complement other private and public sector forms of funding.

The local authority-backed scheme can provide loan finance of up to £100,000 to expanding small and medium-sized enterprises (SMES).

The funding offered to date has included helping businesses to successfully undertake a management buy-out, assist in new product manufacturing, support the building of a new visitor centre and invest in office space.

The 20 businesses supported so far include Kelso-based manufacturer Scotmas, South Lanarkshire swim teaching business Making Waves and Moray brewing company Wooha.

Making Waves, which is owned by Tom and Nicola Mitchell, was awarded the maximum loan amount of £100,000 to support a purpose-built swimming pool as a permanent home for its swim teaching business.

The 25-metre pool has harnessed a range of new technologies that are aimed at giving users a “great experience” while helping to protect the environment. A dozen jobs have been created along the way.

Tom Mitchell said: “We have spent 14 years building up our business and it has been a labour of love. Teaching swimming gives children confidence, exercise, fun and can even save their lives.

“We felt the time was right to take it to the next level and this purpose-built pool has been designed from the ground up to meet the specific requirements of what we do.”

Nicola added: “We installed an innovative filtration system which means we use fewer chemicals and the water is gentler on sensitive skin, Making Waves is the first pool in Scotland to use this Daisy technology. We also have a heat exchange system so warm air being taken out by the air conditioning actually heats the pool water.”

Andrew Dickson, fund manager at Business Loans Scotland, said: “Access to capital remains a major hurdle to many small and mediumsized businesses which are looking to start up and grow.

“Often, our funding can make the difference between a business struggling or flourishing and that in turn will have a positive impact on employment, profitability and making communities stronger.”

A dedicated funding pot amounting to some £6m is still available, the firm added.