£120m JEREMIE 2 fund agreed for the North East

Following a lengthy period of uncertainty, an agreement has finally been reached on a new North East fund known as JEREMIE 2.

Launching in early 2018, the £120m fund will support the growth of hundreds of businesses in the North East with a range of equity investments and loans.

The initial launch was postponed during the summer in the wake of Article 50 being triggered and a snap general election. However, after intense negotiations, the European Investment Bank’s (EIB) top level Management Committee agreed on the final piece of the funding jigsaw.

It is expected that 600 businesses could be supported by the fund, which in turn will help create up to 3,500 jobs.

Chris Hird, Associate Partner at Haines Watts North East, said: "This is excellent news for the North East as these funds are a vital source of finance in the region. When the old funds closed in December 2016 there was a gap in the funding landscape. The new funds will help to generate growth and create jobs in businesses across the region."

The EIB contribution will form part of a £145m funding package which will be invested exclusively in the North East Local Enterprise Partnership (LEP) region and will sit alongside the Northern Powerhouse Investment Fund.

The North East LEP, which covers County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland, led the negotiations for the region.

HW Corporate Finance advises clients in the North East on acquisitions, disposals, fundraising and provides financial due diligence services. Haines Watts is a Top 15 firm of national accountants offering a full range of services to clients, including tax advice, audit and accounts, and business advisory services.

For more information on grants and funding in the North East and Tees Valley, get in touch with Chris Hird on chrid@hwca.com or 07881581824