£350m of funding to be unlocked to create new jobs and businesses in Tyne and Wear
£350m of funding is being unlocked in the North East to create new jobs and to enable small businesses to launch and grow.
The North East mayor Kim McGuinness announced the availability of the new funds which will be open for applications after a series of roadshows across the region.
The ambitious initiative aims to create 2,300 new jobs and support at least 470 innovative businesses over the next 15 years, helping to drive economic growth and opportunity in the North East.
With £70 million put in up front by the North East Combined Authority, the new funds will drive Mayor Kim’s pledge to “help small businesses and entrepreneurs access the capital they need to grow, innovate, and succeed”.
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 parts. The North East Elevate Fund will provide loans from £50,000 to companies seeking to finance growth by, for example, purchasing new machinery; taking on new premises or staff; and launching and marketing a new product.
This fund will also provide loans and mixed loan/equity investments of up to £1m to established businesses. It will be managed by FW Capital.
The North East Accelerate Fund will invest £50,000 to £1m in innovative, early-stage companies from start-up to scale-up stages, through share purchases (equity investment). It will be managed by Mercia Ventures.
To ensure business owners across the region can learn more and access support, the North East Fund will be getting out on the road for a series of events, visiting each of the seven local authority areas in the North East Combined Authority region.
At each event, business owners will have the chance to meet the team and fund managers, get practical guidance on the application process, and hear from local leaders.
The events will also be a chance to network with other business owners.
Jason Hobbs, chief executive of the North East Fund, said: “Access to the right finance is vitally important for start-up, scaling and growing businesses, so we are delighted to build on the success of the existing North East Fund with the launch of these new funds.
“The North East is home to a fantastic range of businesses and entrepreneurs, and the new fund presents a wonderful opportunity for them to make a real impact on the region’s economy.”
The first roadshow event will be held on November 24 at One Trinity Green, South Shields.
You can find out more and register for the events via the North East Fund website.