Partner Article

Rural Growth Network returns to boost North East’s rural sector

The North East’s rural economy has been boosted by the return of the Rural Growth Network, a programme offering both funding and support to the sector.

The programme, which is already helping ten businesses, offers two capital funds to companies - the Strategic Economic Infrastructure Fund (SEIF) and the Rural Business Growth Fund (RBGF).

The SEIF fund can support the creation of enterprise units for multiple business users including enterprise hubs and site preparation works.

It can unlock economic development sites where an end user is in place or support strategic tourism projects that will generate significant overnight stays and day visitors.

The RBGF supports businesses that are planning to expand or diversify into new markets or products. The fund is available for sectors including food and drink, manufacturing, and the creative industries.

Grants are available from a minimum of £10,000 to a maximum of £60,000 to support improvements or expansion of premises and the purchase of capital plant or equipment.

Both schemes are available to support up to 40% of the cost of capital developments, subject to state aids, leading to the creation of more and better jobs in the region’s rural economy.

One project that has recently been supported by the Strategic Economic Infrastructure Fund is the Kibblesworth Village Millennium Centre in Gateshead.

The centre received a grant of just over £41,000 to expand the community centre facilities. The funds have been used to create a new enterprise hub with four office units, meeting space and facilities. The enterprise hub opened in March this year and within three months the units have all been fully let and are set to create at least six jobs.

Gillian Hall, North East LEP board member, said: “Our rural businesses play an important role in supporting the regional economy.

“As such, our focus is on ensuring they have the right package of support to flourish, including access to finance to aid growth, sustainability and job creation.”

In 2015, the Rural Growth Network secured £6m capital investment from the North East Local Enterprise Partnership (LEP) Growth Deal - Local Growth Fund. This investment will support businesses in the rural areas of Durham, Gateshead and Northumberland until 2020.

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