By opening applications for the North East Fund, the Mayor is backing local entrepreneurs and small firms across the region. This 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 every corner of 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.
North East Mayor Kim 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 which provides loans from £50,000+ to companies looking to finance growth by, for example, purchasing new machinery; taking on new premises or staff; launching and marketing a new product. This fund will also provide loans and mixed loan/equity investments of up to £1m to established businesses. Managed by FW Capital.
The North East Accelerate Fund which will invest £50,000 to £1m in innovative, early-stage companies from start-up to scale-up stages, through share purchases (equity investment). Managed by Mercia Ventures
Councillor 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.”
Roadshows: Bringing Opportunity to Every Corner of the North East
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 CA region. At each event, business owners will have the chance to:
- Meet the team and fund managers
- Get practical guidance on the application process
- Hear from local leaders
- Network with other business owners
Jason Hobbs, chief executive of the North East Fund, said: “Access to the right finance is vitally important for startup, 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 events will be held on 24 November at One Trinity Green, South Shields and on 27 November at Energy Central Learning Hub in Blyth. To register to attend either event, visit, www.northeastfund.org/news
Details of further events will be announced in the coming weeks. All interested businesses are encouraged to attend and discover how the Fund can help them take the next big step.
For more information and to apply, visit https://www.northeastfund.org/or contact the Fund team at info@northeastfund.org
