A business development scheme backed by Dundee tyre manufacturer Michelin is celebrating after approving loans worth more than £1 million to SMEs in the east of Scotland.
Since its inception in 2002, the Michelin Development Fund has helped more than 30 firms looking to expand into Europe and the USA, and helped create some 500 Tayside jobs.
Last year was the company’s 40th operating in Dundee, and director of Michelin Development Mike Cole said supporting businesses in the area had always been a priority.
“Michelin has always been involved in supporting the local Dundee community, but we launched the development fund specifically to help the regeneration of local business communities and in particular, to create quality, sustainable jobs,” he said.
“The economic climate has been highly challenging for smaller businesses in the wake of the recession, so it is particularly pleasing that we have been able to help them develop so many employment opportunities for local people.
“Furthermore, access to finance has also been challenging for businesses looking to expand in recent years.
“The development fund has helped many firms gain vital access to loans, which are ultimately unlikely to have been available through traditional means.”
The funding has led directly to 500 new positions in the past decade, predominantly in the manufacturing and services sector.
Companies to benefit include infrared thermal imaging specialists IRT Surveys, IT support firm HoundDog, and computer games development studio Tag Games.
The scheme allows SMEs to access unsecured loans worth £5,000 or more.
It also gives them access to advice and expertise, provided free by the firm’s range of in-house experts and including anything from health and safety to recruitment, and from sales training to productivity improvement.
Loans can be used for projects linked to the creation of jobs, including the purchase of capital equipment, process improvement, working capital and marketing.
The only restriction is that firms applying have fewer than 250 employees and are located in the company’s Dundee catchment area, which extends to Coupar Angus, Cupar, Leuchars, Carnoustie, Arbroath and Forfar.
Funding is also available to small and medium-sized companies in the North Staffordshire and Ballymena areas, where Michelin also has production facilities.
Bursary schemes also operate in Europe and the USA.
The fund which has encouraging entrepreneurship, supporting growth and creating jobs amongst its key aims has a steering group which includes representatives of Dundee and Angus councils, Business Gateway, Scottish Enterprise and RBS, Michelin’s bankers.