Not one Angus business has been granted funding more than a year after the East of Scotland Investment Fund was established.
More than £90,000 has been available for Angus companies in the form of cheap loans but so far no firms have been given funds.
The director of infrastructure services, Eric Lowson, has admitted the lack of uptake is a ”concern”.
However, he said seven Angus companies had approached the fund this year and of these two are in advanced discussions about borrowing money.
In a report to councillors he said: ”This lack of uptake is of concern and promotional activities are currently being reviewed. It is generally believed that the lack of loan activity is as a result of companies not wanting to borrow in the present economic climate if they can avoid it; the interest rate of 6% (set at a market level to avoid issues of ‘state aid’), and the fact that members are taking a cautious approach as to who they will lend to ie loans will not be made to companies that have poor prospects of meeting repayments.”
He continues: ”There have been discussions with seven companies in 2012 and there are currently ongoing advanced discussions with two of these companies.”
The new body replaced the Angus Loans Fund, which was set up by Angus Council in 1997 with the ability to provide a business loan of up to £15,000. Between 1997 and 2009 13 loans were made totalling £113,500.
At a meeting of the infrastructure services committee, Councillor Bob Spink said: ”Although it’s been going for more than 12 months we’ve not had an application from any firm in Angus.
”I think that’s extremely disappointing and perhaps we are not publicising it enough.”