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Cash injections increase for Teesside startups

The number of Teessiders accessing funding to start their own businesses has increased, and new firms have created 30 new jobs as a result.

The Regeneration Fund, which was set up by UK Steel Enterprise to support start-up and small businesses, has approved five times as many loans this year than it did in the same five-month period of 2015.

The businesses backed include an occupational health company set up by former SSI employees, a mini golf course in Skelton, a print and design agency and a recruitment agency. Companies selling power motors, creating illuminated artworks, hand-made collectable bears and training HGV drivers also had loans approved.

The Regeneration Fund, which aims to support the economic regeneration of communities affected by changes in the steel industry, provides loans of up to £3,500 to start-ups, which can be doubled in exceptional circumstances.

UK Steel Enterprise is best known for providing equity and loan packages of up to £1m and purpose-built managed business premises.

The organisation aims to make the process of loaning to new businesses as easy and quick as possible to help reduce the pressure on start-ups.

The Regeneration Fund’s regional executive Sarah Thorpe said: “We have been making more effort to get the word out to start-ups and small businesses that our Regeneration Fund is here to help and we are very pleased with the increase in interest.

“It certainly looks as though Teessiders are showing their usual entrepreneurial spirit in the wake of recent events.

“They are coming forward with business ideas that make use of the skills they have built up in their working lives, or from a hobby, and are investing in their future.

“These may be small amounts of money compared to the investments of up to £1m we can make in larger companies but we know that they can often make a real difference at this early stage.

“Sometimes people just cannot access the few thousand pounds they need to buy vital equipment or transport for the business, rent premises or just to tide them over those early weeks,” she added.

This was posted in Bdaily's Members' News section by Bdaily Publishing .