South Tyneside backs £120million business fund

Councillor Ed Malcolm,
Councillor Ed Malcolm,

A scheme which offers loans to help small and medium-sized businesses grow has received council support in South Tyneside.

Up to 600 North East businesses are anticipated to benefit from the £120million Joint European Resources for Micro to Medium Enterprises (JEREMIE) scheme, South Tyneside Council’s cabinet was told.

The fund comes from several European agencies and is administered by a company formed by members of the North East Combined Authority.

The original fund was due to end in December but South Tyneside Council has agreed to keep supporting the scheme, now branded JEREMIE 2.

Resources cabinet member Ed Malcolm said the first phase of the fund had seen £5.5million invested in 42 South Tyneside businesses, creating 104 jobs and safeguarding a further 107.

According to figures, the first £142million JEREMIE fund has supported 896 companies across the North East and seen 3,089 jobs created, with a further 3,310 safeguarded.

Council leader Coun Iain Malcolm said the first scheme has benefited the region, but he wants to see more South Tyneside businesses receive funding.