To date, 1,283 Scottish businesses have benefited, with the finance delivered through 32 lenders operating across the country, including several independent Scottish lenders.

West Central Scotland leads by both volume and value, securing £65.3m across 367 loans, followed by East Central Scotland (£42.2m) and Southern Scotland (£32.2m).

Among individual localities, Glasgow City (£33.8m) and the City of Edinburgh (£20.4m) top the table, but lending has reached well beyond the central belt.

Aberdeen City and Aberdeenshire (£18.5m), the Highlands and Islands (£16m), and the combined area of Inverclyde, East Renfrewshire and Renfrewshire (£15.2m) round out the top five, underlining that entrepreneurial activity is thriving in rural as well as urban areas.

By sector, wholesale and retail trade and motor vehicle repair attracted the most finance at £30.9m, ahead of administrative and support services (£23.3m), manufacturing (£20.5m), real estate (£17.9m) and construction (£17.8m).

Businesses are using the funding chiefly to purchase or hire equipment and machinery (£59.9m), to expand existing operations within the UK (£46.3m) and to meet general working capital needs (£37.5m).

Scottish Secretary Douglas Alexander described the milestone as a clear demonstration of the UK government’s commitment to Scottish enterprise.

He noted: “From the Highlands to the Central Belt and Scottish borders, businesses across Scotland are accessing the finance they need to grow, create jobs and boost our economy. This funding backs Scottish ambition and helps drive economic growth to benefit communities across the country.”

Blair McDougall, Minister for Small Business and Economic Transformation, added: “By unlocking vital funding, we are ensuring that Scotland’s most ambitious and innovative firms have the finance they need to invest and grow, creating jobs, boosting their local economies and raising living standards.”

Reinald de Monchy, chief banking officer, British Business Bank, said: “Reaching this £200m lending milestone for the Growth Guarantee Scheme in Scotland is a significant achievement.

“It is also a clear sign of the strength and ambition of Scotland’s smaller businesses and our delivery partners in Scotland. This funding is helping Scottish firms invest, innovate and grow, and we’re proud to see the scheme making such a tangible difference across the country.”

The Growth Guarantee Scheme offers lenders a 70% government-backed guarantee, enabling them to extend more debt finance to smaller businesses, though the borrower always remains fully liable for the debt.

Launched in July 2024, it supports term loans, overdrafts, asset finance, invoice finance and asset-based lending across a broad range of accredited lenders.