BANKING giant HSBC has ring-fenced £1 billion for lending to small and medium-sized enterprises in Scotland bidding to build business and create jobs.

The Scottish segment of the £15bn UK fund is for lending to SMEs to support local economies, employment opportunities and drive growth north of the Border.

The bank said firms are “ready to invest for growth and are confident about the prospects for their own businesses”, pointing to the biggest areas of opportunity as sustainability and digitisation.

Last year the HSBC UK SME Fund enabled an Edinburgh-based blanket and scarf company to extend its premises and hire 40 new staff with a seven-figure funding package.

The Tartan Blanket Co. purchased a new 32,000 sq ft warehouse in Newbridge with the bank’s support, to meet increased demand from international customers.


READ MORE: Tartan Blanket in expansion mode as sales surge


Peter McIntyre, of HSBC UK, said that SMEs are “vital to the UK economy” and customers say they are ready to “invest for growth”.

“We want to make a significant contribution to economies across the country, driving employment, local wealth and growth by providing funding, when and where it’s needed most,” he said.

“We know our customers are innovating and adapting at pace and British businesses need their bank to be flexible, supporting future growth opportunities.”

This year’s fund also includes ring-fenced funding for businesses trading internationally of £2bn, in the agriculture sector of £1.2bn, and the tech sector and franchise businesses of £500m each.

It is also aligned with the Green SME Fund with £500m for businesses of all sizes to transition. Since launching the SME Fund in 2014, HSBC has loaned more than £90bn.