£2.25m pot to help small firms bridge the funding gap

Jun 16 2008 by Peter McCusker, The Journal

SMALL businesses in the region can now access a new £2.25m loan fund which aims to assist new or growing businesses that are unable to fully finance their borrowing needs from banks and other traditional sources.

The Regional Enterprise Loan Fund is managed by leading regional enterprise agency Entrust, in partnership with the North East Business and Innovation Centre and Finance Tree, on behalf of One NorthEast.

The fund is looking to lend £750,000 a year to developing regional enterprises during the next three years with the overall aim of encouraging new business start-up, enhancing current business growth, creating new jobs and generating more economic value in the region.

Ian Mudie, regional enterprise loan fund manager at Entrust, said: “Accessing funding is one of the key challenges facing start-up and growth businesses and we know that many small and medium-sized enterprises wanting to grow find it difficult to raise their total funding requirement.

“All too often small businesses reach critical mass and need funding in order to develop, otherwise they can stagnate and be overtaken by competitors.

“We are delighted to be able to offer North East SMEs a new source of financial support to enable them to grow and prosper which, in turn, will benefit the local economy.”

Entrust hopes to assist between 150 and 175 firms which, as well receiving a cash boost ranging from £3,000 to £25,000, depending on the status of the business, will also have access to Entrust’s pool of experienced business mentors to provide guidance, support, encouragement, signposting and networking.

In addition, Finance Tree will be looking to identify a limited number of potential high-growth businesses which receive support from the fund, to deliver specialist mentoring in preparation for a future equity finance raising exercise.

To find out more about the Regional Enterprise Loan Fund and how Entrust could help your business, visit www.entrust.co.uk or call fund manager Ian Mudie on: (0191) 244-4015, email: i.mudie@entrust.co.uk