£27 million to invest in growing North East businesses

Fund manager NEL has recently announced that it has £27m to invest in growing businesses throughout Durham, Northumberland and Tyne and Wear.

This is part of the larger £120m North East Fund supported by The European Regional Development Fund, and is principally comprised of the following:

Growth Capital Fund

This fund backs ambitious businesses which are aiming for growth and job creation.

This aim of the fund is to aid the creation of over 800 new jobs in the region generating £18m of co-investment opportunities by the end of 2022.

Eligibility

Actively trading businesses across most sectors are eligible to apply to the fund. Job creation is an essential part of this, along with the applicants being able to demonstrate the serviceability of fixed monthly repayments.

Key facts

• Investments of up to £500,000
• Terms of up to 5 years
• Unsecured finance, without the need for Director’s Guarantees
• Terms can be bespoke to meet the individual needs of an individual business

Small Loan Fund

This fund can provide finance to support a wide variety of growth plans. The aim of the fund is to boost growth by the creation of over 500 new jobs in the region by the end of 2022.

Eligibility

Actively trading businesses across most sectors are eligible to apply to the fund. Job creation is an essential part of this along with the applicants being able to demonstrate the serviceability of fixed monthly repayments.

Key facts

• Typical investment range £10,000 to £50,000
• Terms of up to 5 years
• Unsecured finance, without the need for Director’s Guarantees
• No arrangement fee on loans under £25,000

Haines Watts can help you make sense of the finance and funding options available to your business. If you've got any questions please contact Chris Hird on 01325 254700