A £2 million private-sector loan fund created by Opportunity North East (One) and the Andrew Salvesen Family Trust has proved to be a vital addition to the region’s entrepreneurial environment.
The One Enterprise Fund, launched in November 2019, supports ambitious small and medium-sized enterprises across the north-east by providing interest-free loans at critical points in their growth.
More than £650,000 of loans for 16 innovative digital, energy, food, drink, agriculture and life sciences businesses have been approved to date.
The One Enterprise Fund is making a difference to entrepreneurs.”
Jennifer Craw. chief executive, Opportunity North East.
The fund is fuelling investment in technology, high-value manufacturing and production capacity, and new jobs.
Loans are repayable within five years, and recipients benefit from taking part in One’s key sector growth programmes and projects.
One of the loans allowed Rora Dairy to invest in new equipment to streamline production and increase volumes.
The fast-growing business makes live yoghurt using milk produced at Middleton of Rora Farm, near Peterhead.
Aberdeen-based clean energy technology company EC-OG introduced new advanced manufacturing capacity with its loan, reducing lead time for a critical component.
The Kindness Bakery, in New Deer, used its loan to buy a more efficient product packing machine – allowing it to fulfil new and larger orders.
The fund has also helped early-stage businesses to secure meaningful equity investments, or achieve significant commercial milestones.
Supporting pioneering technology
Stonehaven-based Trojan Energy is pioneering a novel electric vehicle on-street charging system, with a significant pilot now under way in London.
Trojan used its loan as working capital to bridge a short-term gap funding challenge.
This has allowed the business to move forward with development plans, secure a large Innovate UK grant and complete a funding round.
Sums repaid to the fund become available for distribution in the future.
The quality of the businesses coming forward seeking growth funding is consistently high.”
One chief executive Jennifer Craw said: “Access to funding is a critical issue for scaling businesses.
“The One Enterprise Fund is making a difference to entrepreneurs, providing capital to realise their growth ambitions faster and creating jobs in priority areas including tech and low-carbon.
“The quality of the businesses coming forward seeking growth funding is consistently high.
“The offer of private sector, interest-free funding plus access to growth support through One continues to land well with founders and other investors who recognise its value.”
Business growth will drive region’s economic recovery and transformation
