North East Mayor Kim McGuinness has announced the launch of a major new £350 million investment package designed to deliver a huge boost to the region's economy.
A Major Boost for Local Businesses
The newly created North East Fund, which is now accepting applications, aims to support the growth of more than 470 small businesses and start-ups across the region. This significant financial injection is expected to create approximately 2,300 new jobs over the coming 15 years, providing a substantial lift to local towns, trading estates, and innovative enterprises.
Kim McGuinness stated: "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."
How the Two-Tier Fund Works
The investment is structured as a two-fold fund to cater to businesses at different stages of development:
The North East Elevate Fund, managed by FW Capital, will provide:
- Loans from £50,000-plus for growth initiatives
- Funding for new machinery, premises, staff, or product launches
- Loans and mixed loan/equity investments of up to £1 million for established businesses
The North East Accelerate Fund, managed by Mercia Ventures, will focus on:
- Investing £50,000 to £1 million in innovative, early-stage companies
- Supporting businesses from start-up to scale-up phases
- Making investments through share purchases
Driving Economic Growth and Opportunity
The initiative is backed by £70 million of upfront funding from the North East Combined Authority, directly supporting the Mayor's pledge to help small businesses and entrepreneurs access the capital required to grow, innovate, and succeed.
Councillor Glen Sanderson, Cabinet Member with responsibility for welcoming home to global trade, commented: "This is a significant opportunity for the region's SMEs and one which will support future planning and create much needed jobs."
With applications now open, the first deals are expected to be finalised within weeks, marking the beginning of what promises to be a transformative period for the North East's business landscape.
