Merson will receive an initial £900,000 from the fund, which is managed by Maven, and has been given the option of drawing down another £2.1m.
The firm also announced the first exit from SLF through the sale of oil and gas tool maker Red Spider after just seven months.
SLF provides loans of between £250,000 and £5m to companies having difficulty gaining traditional bank finance, with terms of between three and seven years.
No equity stake is taken in the businesses, with management retaining full operational control.
Merson, which was founded in 1938, has been involved in high-profile projects including the London Olympics and Heathrow Airport’s Terminal 5.
Maven said funding from the SLF would be used to buy the assets of CGL Systems, providing Merson with extra manufacturing capacity and support international expansion from its base in the Middle East.
David Milroy, Investment Director based in Maven’s Edinburgh office, who led the deal, commented “We are delighted to have supported Merson. We have been particularly impressed with the quality and strength of the management team who have a great track record and a strong client base with whom the company has forged long standing relationships.
“The SLF was also encouraged by the company’s recent success and by its growth prospects in the Middle East, where it has established a presence in recent years.”
In October Maven agreed a £4m funding deal for supply ship company Fletcher Shipping through the SLF to allow it to buy a new vessel.
The capital could rise to £5m if Fletcher decides to draw down extra funds for the platform support ship.
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