New fund to help Perthshire businesses

Jun 1 2010 by Johnathon Menzies, Perthshire Advertiser Tuesday

FIRMS in Perthshire will now be able to get their hands on extra cash to fund expansion projects.

Councillors have voted to scrap the 13-year-old Perthshire investment fund and become a member of the more lucrative East of Scotland loan fund.

Members of Perth and Kinross Council’s enterprise and infrastructure committee were told that the locally-based pot of cash has historically been considered “a last resort” in entrepreneurial circles.

Although it totalled £60,000, the Big County scheme only offered loans of up to £15,000 to small ventures struggling to bankroll expansion ventures.

The new project will put in place £4.5m for the whole of the east of Scotland – with a combined £1.7m provided by councils, £1.2m from a commercial lender and £1.6m from the European regional development fund.

Councillor Alexander Stewart said: “This is good news for local businesses because it will produce real benefits for a relatively small outlay.

“It will provide firms with more opportunities to grow and show that we are doing all we can, in very challenging economic circumstances, to help them.”

A PKC officer assured elected members that the £200,000 the local authority is set to invest in the fund will be “ring-fenced” so that only firms in Perthshire and Kinross-shire can benefit from it.

An applicant would, however, be able to tap into a larger amount of non-council-related cash under the new initiative.

Councillors also agreed to allow a member of their environment service represent local interests on the fund’s board, which also includes Fife Council, among others.