New fund to benefit Gateshead business

Jan 13 2010 by Iain Laing, The Journal

GATESHEAD Council has given £750,000 to stimulate business investment in Gateshead and help local companies to ride out the recession.

Cabinet members have agreed to create a new Enterprise and Innovation Fund, designed to stimulate business investment in Gateshead.

Leader of Gateshead Council, Coun Mick Henry, said: “We appreciate the problems local businesses are facing at the moment. From our point of view, the importance of business investment to Gateshead’s future economic well-being cannot be underestimated.

“We’re therefore determined to do whatever we can to help local businesses to invest now, in preparation for the expected upturn in the economy.

“These new grants, which will put £250,000 into local businesses every year for the next three years, will offer a valuable financial cushion, and will help to boost developer confidence at a time when many are probably risk-averse.”

Gateshead Council is targeting this support within a proposed Enterprise and Employment Zone that will cover Team Valley, Central Gateshead and part of East Gateshead including Baltic Business Quarter. The fund will be used to offer a range of financial grants to businesses over the next three years.

Three separate grants are being offered; a regeneration grant, equivalent of up to 50% of the first year’s National non-domestic rates; a development grant, up to a maximum of £20,000 and a business start-up grant, covering up to 50% of start-up costs.