News Article

A new £1m European Union backed investment is to provide small and medium sized businesses in disadvantaged areas of the North East with support in response to the economic downturn.

The Grant for Business Investment (GBI) delivered by One North East is to benefit from the additional funding over the next two years, thanks to part financing from the European Union’s ERDF Competitiveness Programme 2007-13.

The funding will support 40 high growth businesses with grants valued between £10,000 and £250,000.  It is targeted to create a minimum of 60 new jobs, safeguard 60 others and increase the level of existing grant provision currently available to SMEs in the region.

The ERDF injection of funding will encourage capital investment and enable businesses to take the next step forward from development to production, as well as increasing productivity, skills and employment.

“This additional funding to provide more access to business finance for SMEs has arisen as a direct response to the recession,” explained One North East Head of Business Investment Dr Simon Goon.
 
“Specifically, GBI can be used to offset difficulties that businesses face in obtaining capital, especially with the current risk averse nature of the financial markets and the limited collateral that SMEs are able to offer.

“It’s a big boost to receive more funding from Europe to help us increase the level of existing grant provision and business support currently delivered by One North East through the GBI scheme.”

Grant for Business Investment (GBI) is part of Solutions for Business, the Government’s portfolio of publicly funded business support to help companies grow.  The national business support scheme assists business expansion and diversification, in particular by encouraging SMEs to set up new establishments or expand in disadvantaged areas.

“This two year element of the project will provide financial assistance to North East companies using ERDF with match funding from GBI to promote business survival and growth and support sustainable investment and job creation,” added Dr Goon.

The ERDF Competitiveness programme 2007-13 for North East England is managed by One North East on behalf of the European Commission, national government and regional partners.  It is focusing on innovation, enterprise and business support and will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.

For information on the wide range of support available to businesses, please contact Business Link on 0845 600 9006 or visit www.businesslink.gov.uk/northeast

-ends-

Media contact: Stuart Boyd, One North East press office, Tel: 07801 031095 or e-mail: stuart.boyd@onenortheast.co.uk