Investment options for North East businesses have widened after NEL Fund Managers secured a further £3m for the Finance For Business North East Growth Fund.
The additional funding has been awarded by North East Finance, the holding fund manager with overall responsibility for the £125m Finance For Business North East initiative, to help maximise the number of firms across the region that NEL investments can support.
The ceiling that NEL can invest to in any given deal has also been increased, from £400,000 to £750,000, meaning that it is able to back more substantial investment proposals than has been the case up to now.
NEL has so far invested £12m in 58 businesses from the Growth Fund since its launch in spring 2010, with an average investment value of £206,000.
NEL chief executive Barrie Hensby said: “Securing this additional capital and increasing the amount we can invest in an individual deal opens up significant new opportunities for both ourselves and the companies with which we’re working.”
North East Finance chief executive Andrew Mitchell said: “Through their strong deal flow, NEL have demonstrated the increasing business confidence in this region, and we believe that the additional funding will help them build on current success”.
The fund supplements The Journal’s own £30m Let’s Grow campaign, which awards money from the Government’s flagship Regional Growth Fund. Already the campaign is outperforming its target, with 1,870 jobs having been created or safeguarded.
Running from February 2013 to December 2014, Let’s Grow is backed by enterprise managers at the BE Group and business advisers UNW.
Companies in the next round are able to bid for grants of between £50,000 and £1m, towards the costs of investment projects costing £200,000 or more.
Businesses keen to access the fund are urged complete an expression of interest online now at www.thejournal.co.uk/letsgrow
For Finance For Business North East Growth Fund details, see www.nel.co.uk .