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UK Steel Enterprise’s regeneration fund grows 100 startups

More than 100 businesses in the North East have now been helped to start up or grow through their first year thanks to a special Regeneration Fund set up by UK Steel Enterprise, the Tata-Steel business-support subsidiary.

Companies working in manufacturing and service sectors from IT and garden maintenance to tyre fitting and confectionary in the steel areas of Tees Valley and Derwentside have been given speedy access to unsecured loans that give sound business ideas a kick start.

The loans, at fixed interest rates repayable over three years, have been used to help finance premises, buy equipment or a vehicle or simply to provide vital support with cash flow in the early stages.

Recently, EAG Suppliers was helped to start-up in Middlesbrough supplying personal protective equipment and now expects to be employing a team of six before the end of the year.

Other success stories include Valley Adventures in Saltburn, an outdoor activities centre for adults and children; Sunday Dinner Delivery Ltd now delivering home-cooked meals across Teesside and Spearhead Interactive in Middlesbrough, a company developing 3D visualisations and bringing virtual reality into the business world, helped with funding for research and development and promotion.

With almost four decades of experience in business support, UK Steel Enterprise has now invested more than £17 million into the Northern region alone.

It also provides business premises on ‘easy-in easy-out’ terms at its two Innovation Centres in Hartlepool and Redcar, currently housing about 80 growing companies.

Founder Graham Moore said: “I was finding it hard to get any financial support, so I was very grateful when UK Steel Enterprise stepped in with help to cover some initial expenses including buying stock.”

Area Manager Peter Taylor said: “UK Steel Enterprise is known for supporting companies with financial packages of up to £1 million for major projects but our Regeneration Fund was established specifically to help businesses in their earliest days.”

“The finance needed by startups and young businesses may only be a few thousand pounds but it can often be difficult to find those small amounts at the start of a new venture.

“Our aim was also to put the funding in place speedily because we recognise the difficulties caused by lengthy delays or frustrating paperwork.

“Often successful business projects have a Regeneration Fund loan agreed by us within a week.

“Business start-ups have an important part to play in the economy of a region and they can go on to become major employers.

“We are delighted to have reached the milestone of helping 100 businesses and the range of activities involved is a credit to the entrepreneurial spirit in our region.

“The success of the Regeneration Fund in Tees Valley has led to us establishing one to cover West Cumbria as well.”

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