Member Article

£10 million RGF boost bridges Finance Yorkshire funding gap

Finance Yorkshire has secured £10 million from Round 6 of the Regional Growth Fund to invest in businesses across Yorkshire and the Humber.

There was some uncertainty as to the continuation of Finance Yorkshire due to the lengthy process of gaining further funding, but now the funding body will be able to resume taking applications for Seedcorn and business loans.

This RGF announcement follows the full investment of Finance Yorkshire’s £90 million fund which saw 694 investments in businesses across Yorkshire and the Humber.

The firm says this created and safeguarded 9,240 jobs and increased overall turnover by £265 million.

Chief executive Alex McWhirter said: “This is excellent news and a tremendous boost for Yorkshire and the Humber.

“The grant will allow Finance Yorkshire to continue its vital investment work in providing gap finance to companies with viable and achievable business plans, allowing them to grow and expand and create jobs in the region.”

“Our investments have already given businesses a timely boost which has led to substantial private sector investment and more employment opportunities being created.

“The RGF grant will further increase that effect and with growth firmly back on the business agenda, the economic impact of the new investment available should not be underestimated.”

James Newman, chairman of Finance Yorkshire and chairman of the Sheffield City Region Local Enterprise Partnership said: “Finance Yorkshire’s investments to date have had a huge impact on the regional economy, enabling businesses to grow, create jobs and wealth.

“The RGF grant provides the opportunity for Finance Yorkshire to build on its track record and further invest in companies right across the region, supporting them in their ambitions to succeed and grow.”

The award is subject to the completion of satisfactory due diligence.

The Government’s Regional Growth Fund has invested nearly £3 billion to help businesses in England to grow; so far generating over 100,000 jobs.

56 new awards in Round 6 and seven through exceptional RGF support – announced on 12 February 2015, gives £297 million to 63 projects and programmes to create and safeguard thousands more jobs and unlock an additional £1.5 billion private sector investment.

This was posted in Bdaily's Members' News section by Clare Burnett .