UK, £125m fund for SMEs from North East

A team of financiers is creating a new £125m fund, which will help business to start up and grow in the North East.

The fund will be driven by the regional development agency One North East with the support of the European Investment Fund (EIF), which manages the Joint European Resources for Micro to Medium Enterprises initiative (JEREMIE), an initiative of the European Commission and the EIB Group to enhance SME finance.

JEREMIE’s resources are mainly derived from EU Structural Funds for the funding period 2007-2013, the money issued by the European Commission to EU Member States and their Regions for SMEs. National and regional Managing authorities of the EU Member States may opt to participate in JEREMIE and decide the investment strategy, related financial instruments, amount of funds available or the selection of the financial institution managing JEREMIE actions.

The JEREMIE North East fund is set to comprise £62.5m worth of One North East and European Regional Development Fund (ERDF) 2007-13 money with a planned £62.5m from the European Investment Bank (EIB).

The fund has the target to provide access to finance to 850 small to medium-sized companies, helping them grow and invest for the future.

Money will be channeled into businesses through a series of smaller funds managed by venture capital companies.

They will invest the money into firms in three specific areas:
– new start ups,
– technology-based businesses,
– growing smaller businesses.

FinSMEs

27/08/2009

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