Business growth fund generates £40m
- 6 hours ago
- 2 min read
A fund designed to increase business growth in County Durham has attracted £40 million of investment in less than a decade.
Durham County Council’s Cabinet will be given an update on the Finance Durham Fund (FDF) which provides loans to help the growth of county-based businesses and attract new companies to the region.
First launched in 2017, and administered by Maven Capital Partners on behalf of the council, the evergreen fund uses the returns on investments to re-invest into other businesses to support economic growth in the county.
In an update to Cabinet, councillors will hear that there have been 58 investments into 38 companies, totalling £17.29 million, since the fund was first launched.
This £17.29 million has levered an additional £40 million of investment, supporting nearly 1,500 jobs with a Gross Value Added (GVA) impact of £44 million.
In addition to business loans, the fund also provides ‘access to finance’ business support, helping businesses increase their capabilities and skills to grow and thrive.
Cllr Joe Quinn, Durham County Council’s Cabinet member for planning, investment and assets, said: “The impact that the Finance Durham Fund has facilitated in just a few years demonstrates the value that the fund brings to the county’s economy.
“At a time when public funding for business support grants is likely to be in shorter supply, the Finance Durham Fund will play an even more important role in supporting the growth of our county’s enterprises. It also provides a key investment incentive that sets us apart from other competitor locations, helping to attract more companies to the area.”
Councillors will be told that the fund has played an important role in developing the county’s economy by investing in sectors that are at the forefront of innovation.
Examples include Power Roll Ltd, which produces a low cost, low weight solar film; Dyer Engineering, which is the largest independently owned engineering company in the county; Pragmatic Semiconductor, which opened the UK’s first 300mm semiconductor fabrication site in Meadowfield; and NETPark companies Magnitude Biosciences and PervasID.
Despite a challenging environment for businesses and global economic uncertainty in recent years, enquiries for the fund remain strong.
Councillors will hear the fund has £3.7 million ready to award to businesses, with several potential deals totalling over £2 million currently under consideration.
Cabinet will be given a full update on the fund and be asked to agree to receiving an annual update when it meets on Wednesday 22 April.
.png)
