Government Backed Loans for Businesses in Tyne and Wear
The North East's longest-standing business investor is looking to further increase the number of regional firms with which it works after being confirmed as an accredited provider for the government's new Recovery Loan Scheme (RLS).
NEL Fund Managers has been accredited under RLS by the British Business Bank to provide loans of between £25,001 and £250,000 to regional businesses that have been adversely affected by the Covid-19 pandemic.
The Recovery Loan Scheme, which is scheduled to run until the end of the year, is designed to help businesses of any size across most industry sectors access loans and other kinds of finance, as they recover and grow after the pandemic.
Business that received support under the earlier Covid-19 loan guarantee schemes are still eligible to access finance under this new scheme if they meet all other eligibility criteria.
The loans complement the growth capital investments that NEL already makes across Tyne & Wear, Durham and Northumberland from the two elements of the £120m North East Fund Supported By The European Regional Development Fund that it manages - the £9m North East Small Loan Fund and the £18m North East Growth Capital Fund.
Over the last year, NEL has been providing loans of up to £250,000 under the Coronavirus Business Interruption Loan Scheme in conjunction with its usual Growth Capital Fund and Small Loan Fund lending activity.
Dr Yvonne Gale, chief executive at NEL Fund Managers, says: "The funding we've been able to provide through the Coronavirus Business Interruption Loan Scheme has made a significant difference to the future prospects of many North East firms and we're expecting the Recovery Loan Scheme to have a similar impact.
"As well as enhancing their cashflow, businesses utilising the Recovery Loan Scheme will also be able to access the advice and guidance provided by our expert team to all our investees both as they develop their applications and after they've received their investments.
"While economic conditions will undoubtedly remain challenging for the foreseeable, we know that there will continue to be a flow of ideas from regional businesses for new products and services that enable them to thrive in the future.
"We're keen to talk to more regional firms that haven't previously considered bringing in outside investment to help them grow and to outline the impact our investments have made on the performance of many dozens of businesses that we've previously backed."
Jason Hobbs, chief executive at the North East Fund, adds: "We are delighted that loans from our Small Loan and Growth Funds can now be made under the Recovery Loan Scheme.
"This further enhances the offering of The North East Fund, ensuring that we can maximise the availability of loans to companies which have been stretched by Covid but are now recovering and seeking to grow again."
For more information about NEL's investment criteria, visit www.nel.co.uk or contact the investment team on 0845 111 1850.