Business investor NEL Fund Managers has a further £4m to make available to regional companies folowing fresh accreditation.
The Newcastle organisation has been confirmed as a provider for the new iteration of the Recovery Loan Scheme (RLS) by the British Business Bank, meaning it can provide loans of between £25,001 and £250,000 to North East firms as part of its wider investment offering of up to £500,000.
NEL was first accredited for the Recovery Loan Scheme in 2021, and it has since made 29 RLS investments with a total value of over £4.15m. The RLS scheme complements the growth capital investments NEL already makes across the region from the two elements of the £120m North East Fund that it manages - the £9m North East Small Loan Fund and the £18m North East Growth Capital Fund.
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The Recovery Loan Scheme is scheduled to run until next June and is designed to help businesses of any size access loans and other kinds of finance, as they recover and grow after the pandemic. Business that received support under earlier Covid-19 loan guarantee schemes are still eligible to access finance under the RLS if they meet all other eligibility criteria.
Jonathan Luke, chief executive at NEL Fund Managers, says: “The economic consequences of the pandemic are still very much being felt by many North East firms that are also battling against a range of other economic challenges.
“Making further growth capital available through the new iteration of Recovery Loan Scheme will provide access to the resources they need to make progress, in terms of both cashflow and the advice and guidance that our expert team provides to all our investees.
“The funding we’ve already been able to provide previously under the Recovery Loan Scheme has made a real difference to the fortunes of many North East firms and we’re keen to hear from more regional businesses about how they could use it to build a sustainable future.”
Jason Hobbs, chief executive at the North East Fund, adds: “We are delighted that loans from our Small Loan and Growth Funds can continue to be made under the government’s Recovery Loan Scheme. This ensures that the North East Fund is able to maximise the availability of growth finance for companies impacted by the pandemic and other economic factors.”
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