£18 million fund for regional businesses

A fund of £18 million is available to help small firms in the North East of England that cannot access finance elsewhere.


A fund of £18 million is available to help small firms in the North East of England that cannot access finance elsewhere.

A fund of £18 million is available to help small firms in the North East of England that cannot access finance elsewhere.

Sponsored by One NorthEast, the Regional Development Agency, the North East Investment Fund 3 (NEIF 3) follows its two successful predecessors in providing gap funding, in the form of loans, to small businesses.

NEIF 3 aims to provide gap funding in circumstances where alternative sources of funding are not sufficient or available. Firms will need to demonstrate that a ‘funding gap’ has been identified. For example, a small business that is viable or has a viable business plan and is still unable to attract sufficient funding at any price for its requirements would be eligible.

Firms will be considered if they cannot obtain bank finance due to lack of tangible security, are ineligible for local authority or Government grants, are seeking working capital support rather than asset finance and are not attractive to venture capitalists because of size or perceived risk.

The amount of funding on offer ranges from between £10,000 and £250,000 and the average investment of the first two funds was around £40,000. Over the next three years, NEIF 3 intends to help 330 firms in the region.

Firms interested in finding out more should contact Karl Gardiner at One NorthEast, Stella House, Goldcrest Way, Newburn Riverside, Newcastle upon Tyne, NE15 8NY, call on 0191-229 or email karl.gardiner@onenortheast.co.uk.

(23/2/04)

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