THE Borders is to get a £3.6 million windfall for business investment aimed at creating around 55 jobs in Hawick, which has been hit hard by the loss of knitwear factory jobs.

An “incubator centre” will help businesses in the area to “establish themselves and grow” thanks to the funding package.

The funding was awarded last year in response to a series of employment setbacks in the historic town.

It will help develop four industrial units at the edge of the town, upgrade existing business facilities in Hawick’s Tower Mill and secure commitment by Scottish Borders Council to fund and undertake feasibility studies for regeneration of two further redundant mill buildings to inform potential investors.

The Scottish Government is working with Scottish Borders Council, local businesses and community groups to further develop the local economy, building upon the Hawick Action Plan.

The support is part of a £10m local economic development capital grant fund, which is also supporting businesses in North Ayrshire, Clackmannanshire and Fife.

Minister for Business, Innovation and Energy Paul Wheelhouse said the business incubator will be set up in the former Armstrong’s department store building in Teviot Crescent.

He said the new set-up will encourage entrepreneurs and help them to launch their own start-ups.

“Supporting economic growth in the south of Scotland is a priority for this government, creating and protecting jobs and enabling local businesses to flourish.

“The business incubator in the former Armstrong’s building will give new and rapidly developing companies the opportunity to come together and grow.

“The new and upgraded business infrastructure in and around Hawick will encourage entrepreneurs, generate start-ups and ensure that the region can meet all the business needs that expanding companies may have.

“This will boost the economy in the south of Scotland, creating up to 55 jobs, and will let local businesses build upon the reputation for innovation and hard work for which they are renowned,” said Wheelhouse.

A local councillor said he hoped this new investment would not just produce more jobs, but also help to breathe new life into the town centre.

Councillor Mark Rowley, SBC’s executive member for Business and Economic Development, said: “These projects will not only provide new job opportunities in Hawick but will hopefully act as a catalyst for further property redevelopment and inward investment in the town in the future.

“Redeveloping the former Armstrong’s building will deliver new, small office units suitable for start-up firms and existing businesses in the town centre and will also bring life back to a building which has been empty and derelict for many years.”

Last February Business Minister Fergus Ewing called for the creation of an “enterprise zone” for Hawick at a meeting to discuss its economic future.

Hawick Knitwear went into administration the month before with the loss of more than 100 jobs.

Ettrick, Roxburgh and Berwickshire MSP John Lamont said a first enterprise zone in the Borders could encourage investment.

After the meeting, Ewing said it was time to “consider the specifics” of what could be done to help the town such as refurbishing old buildings and boosting digital infrastructure to create a vision of the Borders as a “great place to live and work”.

“Let’s see what in practice we can actually do – positive, practical things, I am a great believer in that,” he said.