The start of 2019 has already brought a good news boost to the region’s SMEs with the North East Fund announcing that it has reached its first £10m milestone of investment allocated to local businesses.
The multi-million pound investment is a result of more than 80 SMEs across Newcastle, Gateshead, Sunderland, Northumberland, Durham, and North and South Tyneside, successfully receiving investment ranging from £10k to £2m to grow or start a business.
Operating across a diverse range of sectors, companies like Durham-based Ronco Engineering and South Tyneside’s The HR Dept, have significantly benefitted over recent months and are now using the funding to expand and create new jobs, invest in R&D and equipment as well as increase production levels.
The latest company to receive funding and tip the Fund’s investment over the £10m mark is Trench Networks, a multi award-winning, innovative company that has created a device to supply superfast broadband to remote working environments.
Dawn Dunn, Marketing Manager at the North East Fund, commented, “This milestone is a significant indicator that the North East Fund is well on target to meet the demands of businesses across the region. We would encourage SMEs of all sizes to get in touch and find out how to access investment for the next stage of their development.
“£10m is a significant amount and the first rung on the ladder to delivering the much larger pot of investment for the region. By providing the means, we will see return that will be invested directly back into the region with long-term benefits.”
Backed by the EIB, the North East Fund has £120m of investment agreed for the area’s small to medium-sized enterprises over the next five years. The £10m milestone now delivered includes funding allocated from five separate loans; the venture, innovation, capital growth, development capital, and small loan fund.
North East Fund aims to assist approximately 600 SMEs through growth, employment generation estimated at 2,500 jobs and generate return on investment that is put back into the regional economy.