A £350m boost to business has been unlocked through a new investment fund which aims to support the growth of more than 470 small businesses across the region.
North East Mayor Kim McGuinness has launched new investment funds designed to release the huge sum for job creation, which will deliver a major boost to the region’s towns, trading estates and start-ups. Applications are now open for the North East Fund – a two-fold fund – which the mayor says will back local entrepreneurs and small firms in their ambitions to grow.
The initiative aims to create 2,300 new jobs and support at least 470 innovative businesses over the next 15 years, helping to boost economic growth and opportunity. With £70m put in up front by the North East Combined Authority, the new funds will drive the Mayor’s pledge to help small businesses and entrepreneurs access the funds they need to grow, innovate, and succeed.
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Ms McGuinness said: “Small businesses are the beating heart of our economy. By opening the new North East Funds for applications, we’re giving local entrepreneurs and business owners the support they need to create jobs and drive real opportunity in innovative businesses across our towns and trading estates.
“We aim to create 2,300 new jobs over the next 15 years by backing at least 470 small firms and start-ups to grow and I expect to see the first deals struck within weeks now that applications are open. This is the dynamic and accessible fund North East firms have been waiting for.”
The Fund will be split into two initial part, with the North East Elevate Fund providing loans from £50,000-plus to companies looking to finance growth by purchasing new machinery, taking on new premises or staff, or launching and marketing a new product.
The fund, which is managed by FW Capital, will also provide loans and mixed loan/equity investments of up to £1m to established businesses. Meanwhile the North East Accelerate Fund which will invest sums from £50,000 to £1m in innovative, early-stage companies from start-up to scale-up stages, through share purchases. This fund will be managed by Mercia Ventures.
Coun Glen Sanderson, Cabinet Member with responsibility for welcoming home to global trade said: “This is a significant opportunity for the region’s SMEs and one which will support future planning and create much needed jobs. I am delighted we can support our small businesses in this way and encourage those who may benefit to engage in the early discussions to find out more.”