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EU Funding Impact in the North East: Leveraging Growth Opportunities

Discover how EU Funds have catalyzed economic growth in the North East, creating jobs and fostering SME development. Learn about financial instruments, investment funds, and the impact of the JEREMIE Fund. Explore the successes and future prospects for financing initiatives in the region post-Brexit.

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EU Funding Impact in the North East: Leveraging Growth Opportunities

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  1. 2010 Going For Growth EU Funds in the North East 6th October 2017

  2. Introduction • Who we are • What we do • EU Funding • Impact on North East • Availability of finance going forward

  3. EU Structural Funds – Some numbers 2014-2020 256 bn euros allocated to ERDF/ESF 2007-2013 12.5 bn euros invested in financial instruments 2014-2020 20 bn euros expected to be invested in financial instruments 2014-2020 Over 500,000 jobs to be created

  4. North East Funding Allocations 2014 - 2020 Total ERDF/ESF allocation: England £6,937m Tees Valley £201.7m NELEP £537.4m

  5. Investment Funds in the North East • Pioneers in utilising EU funds in financial instruments, dating back to late 1990s • Rest of EU only just catching up in terms of use of FIs • Specific challenges of the North East mean that public funds are necessary • Use of debt/equity means that funding can be reutilised • Approx £100m of public funds invested over 2000 – 2009, utilising both EU and ONE North East funding • £160m JEREMIE Fund invested over the course of 2010 - 2016

  6. Addresses problems of SMEs accessing finance due to size, stage of development and geographical location • Suite of seven investment funds totalling £160m providing loan, equity and mezzanine finance to North East SMEs • Financed via ERDF and other public sources of finance, matched with a loan of £71m from European Investment Bank • Private sector model, commercial approach, managed by FCA regulated fund managers • Local delivery

  7. Impact of the JEREMIE Fund – Multiplier effect ERDF £54.25m

  8. Impact of the JEREMIE Fund (cont’d)

  9. Impact of the JEREMIE Fund (cont’d) • Freelance/consultancy jobs • Jobs in supply chain • Impact on advisory and support community • Fund managers attracted to the region • Investors attracted to the region • Overall activity makes NE a better place to start and grow a business

  10. Some Successes

  11. What next? Finance Durham Fund 3,700 jobs Launch tbc

  12. Summary • Early stage investment in North East heavily reliant on EU funds • Significant funding made available over the past 15 years or so • Huge impact on the NE economy, both directly within the SME beneficiaries and indirectly within the “ecosystem” that has developed around the funds • We remain part of the EU, and should make the most of funding opportunities while still available • Post Brexit, UK Government needs to recognise that the funding gap will still be there

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