Mayor backs businesses with £70 million fund

A new investment drive is set to boost small businesses in the North East, unlocking growth and creating thousands of jobs across the region.

North East mayor Kim McGuinness has launched the North East Investment Fund, a £70 million initiative from the Combined Authority which is designed to support 470 businesses and generate 2300 jobs.

The venture capital fund aims to unlock £350 million over 15 years, with £170 million from private sector co-investment.

Focusing on businesses underserved by mainstream finance, the fund will provide equity and lending to drive innovation and expansion. 

Mayor McGuinness said: “Small businesses are the beating heart of our economy and I want to help them grow and create thousands of new jobs and real opportunity in the local high streets, back lanes and trading estates across our region.

“That’s why we are investing £70 million to unlock the support we have been missing to fund young business growth, create jobs and support the brilliant and creative people who just need funds to take the next big step to success.”

Pending approval from the North East Combined Authority cabinet meeting on March 18, the first investments are expected by the summer, as the fund aims to bridge the historic funding gap between the North East and the South.

Mayor McGuinness added: “We have no time to waste to grow our economy, so I want to see this new North East Investment Fund striking its first deals within weeks.”

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