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?Super fund? could create 5,000 regional jobs

The Government yesterday backed plans to create a £125m ‘super fund’ to help hundreds of North East small businesses.

The treasury has shown the green light to the JEREMIE fund (the Joint European Resources for Micro to Medium Enterprises Initiative) and will go live early next year.

The venture capital fund is the first of its type in England and will provide loans and equity investments to 850 firms over a five-year period. This is anticipated to create more than 5,000 jobs in the region.

The Federation of Small Businesses (FSB) in the North East welcomed the scheme, which will provide a boost to small businesses currently struggling with rising costs and lack of credit.

Colin Stratton, North East Regional Chairman of the FSB, said: “The Federation of Small Businesses (FSB) is delighted that One North East has received backing from the Treasury.

“Whilst waiting for these funds to be cleared we will be continuing discussions with One North East to ascertain what can be done now to assist small businesses in the region.”

One North East and the European Regional Development Fund (ERDF) will inject finance into North East firms in three specific areas – new start ups, technology-based businesses and growing smaller businesses widening the scope to help more organisations looking for investment.

Malcolm Page, One North East Deputy Chief Executive, is leading the team of financial experts who have spent the last year and a half putting the wheels in motion for the new fund.

He said: “The investments from JEREMIE will be specifically targeted to create new jobs, protect existing jobs and help firms with plans to grow, to take advantage of the economic upturn when it arrives.

“We are on course to open the fund for business early next year and this will ensure that the new funds are immediately on stream as the existing schemes in the region come to a close.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .