A North East council is hoping to save more than 1,700 jobs with a £5m grant scheme that aims to keep almost 900 firms in business.
The Durham Business Recovery Grant will help County Durham businesses to adapt and recover from the Covid-19 pandemic by supporting them as they develop new ways of working.
Grants of between £1,000 and £40,000 are available, up to 75% of the cost of each business’ recovery plan. The scheme is open to any business in the county with a workforce of up to 250 people.
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Funding for the scheme has come partly from the Government’s Additional Restrictions Support Grant, but £3m has come from the council’s own resources.
The grants are available to projects such as adapting business models or premises to attract new customers, digitisation, marketing support, new product development or buying new equipment.
Coun Carl Marshall, Durham County Council’s cabinet member for economic regeneration, said: “This is something that’s unique to Durham. I’ve spoken to hundreds of businesses since the pandemic hit and many of them have fallen through the cracks of existing business support schemes.
“They are having to invest to change the way they do business, all the while their incomes have been wiped out or drastically reduced. These grants are positioned to support businesses and allow them to find opportunities in the post-Covid world.
“We’ve worked for a while now to make Durham a place that has an environment where businesses look to invest and grow. That’s been a strategic priority for the authority for a number of years and this new scheme fits into that objective.
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“The longer-term impact of the pandemic is yet to be seen but this is about us doing what we can to give businesses a fighting chance to survive, grow and support jobs.”
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The council said the grant scheme will support more than 880 firms and has the potential to safeguard over 1,760 jobs.
Ben Gilhespy, director of operations at the Engineering and Manufacturing Network, said: “2020 has been one of the most difficult years in memory for engineering and manufacturing businesses and has seen a shift of focus to survival rather than growth.
“Recovery is now critical in 2021 for one of our region’s most important sectors and biggest employers where we can explore new opportunities both in existing and developing markets. The potential to see financial support for this through the Durham Business Recovery Grant will allow businesses to realise their plans more quickly and possibly even implement ones that may otherwise not have been possible.”