£120million fund will boost small business
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A new £120million investment fund to drive local growth and job creation is set to go live.
An agreement was signed by representatives from the European Investment Bank (EIB) and The North East Fund Limited (TNEFL) to launch the The North East Fund.
Supported by the European Regional Development Fund, it will offer a range of investments including equity, debt and mezzanine funding in the North East LEP area, which covers County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.
The fund will provide financial support for more than 600 businesses, creating around 3,500 jobs over its life and delivering a legacy of up to £80million for further investment over the next decade.
Experienced Fund Managers have been appointed to manage five separate funds which will cater to the needs of businesses at different stages across different sectors.
Details of the Fund Managers are expected to be announced in early April.
Helen Golightly, Executive Director for the North East LEP, which led the project team negotiating for the region, said: “We have always believed that retaining investment funds exclusively for North East companies was the right decision and are grateful to the Treasury, EIB and Ministry of Housing, Communities and Local Government for their efforts and support to the team.
“This is a fantastic achievement for the North East and all the tireless work behind the scenes has now paid off.”
Exchequer Secretary to the Treasury, Robert Jenrick, said: “This is an important step in ensuring that growth and opportunity are spread fairly across the country.
“The investment will be a big boost to small businesses operating in the North East, driving productivity and bolstering the Northern Powerhouse’s economy.
“By generating thousands of new jobs and upskilling people across the region, the positive impact will be felt for generations to come.”
Northern Powerhouse Minister Jake Berry MP said: “With over £120million of investment flowing into the region, strengthening local businesses and creating thousands of new jobs, the North East Fund signals another major economic boost to the Northern Powerhouse.
“It will provide welcome finance for smaller businesses to reach their potential while bolstering the Northern Powerhouse’s reputation as a world-beating location to start and grow your business.”