A funding initiative designed to support new businesses overcome the challenge of the oil and gas crisis has been officially unveiled.
Last year, the city council promised a £750,000 cash pot to help “start-up” firms navigate the tough economic climate resulting from the downturn.
Since then, finance bosses say the need for support has become even greater because of the the uncertainty surrounding Britain’s exit from the EU.
Firms can apply for anything from £25,000 to £100,000.
The scheme was put forward by the city and has been supported by Business Loans Scotland, the EU and RBS.
It is now being rolled out across the country.
Last night, council leader Jenny Laing said the fund was essential in helping stimulate the economic growth of the city and wider region.
She said: “We know that Aberdeen is the start-up capital of Scotland with 1,300 new businesses in the past year across all sectors.
“And we have a unique set of circumstances.
“On one hand we had the downturn but at the same time we had a record number of start-ups.”
Industry body Oil and Gas UK estimate that around 120,000 jobs have been lost since the downturn started in 2014.
This includes posts across the supply chain and the wider economy.
Direct employment in oil and gas dropped from an estimated 41,700 in 2014 to 34,000 in June 2016.
Mrs Laing added: “The feedback we got from businesses was with Brexit and the talk of another looming independence referendum it’s becoming increasingly difficult for start-ups to attract investment.
“This money will allow businesses to hire staff, to bring products online as well as pay for a range of other essential expenses – it’s a meaningful fund which will have a tangible effect.”
Match funding is required for each application, either in cash or equity.
Firms can now apply online and if they are deemed suitable they will have to go through an interview and appraisal process.
Applications will be accepted until September 30, 2018.
For more information visit www.bls.scot.
Recommended for you
