North East Mayor Kim McGuinness unlocks £350 million to create jobs and grow small businesses across the region

Kim McGuinness, photo credit : North East Combined Authority

The North East’s towns, trading estates, and home-grown businesses are set for a major boost as Mayor Kim McGuinness launches new investment funds designed to unlock £350 million for job creation and small business growth.

By opening applications for the North East Fund, the Mayor is backing local entrepreneurs and small firms across the region. This ambitious initiative aims to create 2,300 new jobs and support at least 470 innovative businesses over the next 15 years, helping to drive economic growth and opportunity in every corner of the North East.

With £70 million put in up front by the North East Combined Authority, the new funds will drive Mayor Kim’s pledge to help small businesses and entrepreneurs access the capital they need to grow, innovate, and succeed.

North East Mayor Kim McGuinness said: “Small businesses are the beating heart of our economy. By opening the new North East Funds for applications, we’re giving local entrepreneurs and business owners the support they need to create jobs and drive real opportunity in innovative businesses across our towns and trading estates.

“We aim to create 2,300 new jobs over the next 15 years by backing at least 470 small firms and start-ups to grow and I expect to see the first deals struck within weeks now that applications are open. This is the dynamic and accessible fund North East firms have been waiting for.”

The Fund will be split into two initial parts:

The North East Elevate Fund which provides loans from £50,000+ to companies looking to finance growth by, for example, purchasing new machinery; taking on new premises or staff; launching and marketing a new product. This fund will also provide loans and mixed loan/equity investments of up to £1m to established businesses. Managed by FW Capital.

The North East Accelerate Fund which will invest £50,000 to £1m in innovative, early-stage companies from start-up to scale-up stages, through share purchases (equity investment). Managed by Mercia Ventures

Councillor Glen Sanderson, Cabinet Member with responsibility for welcoming home to global trade said: “This is a significant opportunity for the region's SMEs and one which will support future planning and create much needed jobs.

I am delighted we can support our small businesses in this way and encourage those who may benefit to engage in the early discussions to find out more.”

Roadshows: Bringing Opportunity to Every Corner of the North East

To ensure business owners across the region can learn more and access support, the North East Fund will be getting out on the road for a series of events, visiting each of the seven local authority areas in the North East CA region. At each event, business owners will have the chance to:

· Meet the team and fund managers

· Get practical guidance on the application process

· Hear from local leaders

· Network with other business owners

Jason Hobbs, chief executive of the North East Fund, said: “Access to the right finance is vitally important for startup, scaling and growing businesses, so we are delighted to build on the success of the existing North East Fund with the launch of these new funds.

The North East is home to a fantastic range of businesses and entrepreneurs, and the new fund presents a wonderful opportunity for them to make a real impact on the region’s economy.”

The first events will be held on 24 November at One Trinity Green, South Shields and on 27 November at Energy Central Learning Hub in Blyth. To register to attend either event, visit, www.northeastfund.org/news

Details of further events will be announced in the coming weeks. All interested businesses are encouraged to attend and discover how the Fund can help them take the next big step.

For more information and to apply, visit www.northeastfund.org or contact the Fund team at info@northeastfund.org

FAQs

Q1: Who can apply for the North East Fund? A: SMEs based in Tyne & Wear, Northumberland, and County Durham are eligible. The funds support companies at most stages, sizes, and sectors, including those who haven’t previously raised external finance.

Q2: What types of funding are available? A: The Fund offers both equity and loan investments, ranging from £50,000 to £1 million, delivered through three specialist funds: Spinout Inspire, Accelerate, and Elevate.

Q3: What is the North East Accelerate Fund? A: The Accelerate Fund provides equity investments of £50,000 to £1m + for innovative, early-stage companies, from start-up to scale-up. This Fund is managed by Mercia Ventures.

Q4: What is the North East Elevate Fund? A: The Elevate Fund offers loans from £50,000+ to help established businesses grow, with larger loans and mixed loan/equity investments up to £1 million. Managed by FW Capital.

Q5: How do I apply? A: Visit www.northeastfund.org for eligibility details or contact info@northeastfund.org

Q6: Will there be opportunities to learn more in person? A: Yes. The North East Fund team will be hosting a roadshow across the seven local authority areas in the North East CA region, where business owners can meet advisors, get practical guidance, and network with other entrepreneurs.

Q8: What is the track record of the North East Fund? A: Between 2005 and 2025, its funds invested £420 million in 2,288 North East companies, helping to create over 11,300 jobs and safeguard 12,500 more.