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A fund to help farms and other rural businesses in North East England to start up, grow and diversify has invested more than half a million pounds in its first six months of operation.
The £1m micro-enterprise fund, part of the Rural Development Programme for England (RDPE) in the region, has now committed more than £568,000 for projects by 185 different customers since its launch in May.
The cash is there to help micro-enterprises in rural parts of the region with elements such as start-up revenue and capital investment costs, technical and marketing support, product development, branding and design.
The fund is just one part of the RDPE support being managed by regional development agency One North East.
Rural business owner and the Agency’s rural board member, Ian Brown, said: “We’re delighted that the micro-enterprise fund has passed this milestone.
“At a time when accessing finance is difficult for any business, this funding is a way for farms and small rural firms to get the support they need to take forward plans for growth or diversification in this tough economic climate.
“We’ve already seen some fantastic projects winning support, and we look forward to seeing many more being approved in the next six months.”
Hownsgill Farm near Consett was among the first businesses to win support from the micro-enterprise fund.
Brothers John and Stephen Shaw used their grant to help create a new tearoom, complementing a bunkhouse which has already been developed in the farm’s former milking parlour.
They hope it will help pull in even more passing walkers and cyclists from the Coast to Coast route.
John said: “Our location has helped attract plenty of guests to the bunkhouse, which is doing really well.
“There’s already a lot of interest in the tearoom as we’re putting the finishing touches in, and we’re also looking at how we can diversify our operations even further in future – potentially offering static caravan accommodation.”
The micro-enterprise funding is available through the North East England Investment Centre (NEEIC), which works to help emerging and existing companies to develop and grow by investing public funds in those entering into business development projects, using external suppliers.
The NEEIC is now 18 months old and, throughout that time, has constantly evolved to bring improvements to its customers. It has launched an online application facility and is adding value for businesses of all sizes and from all sectors across the region. The NEEIC now aims to make decisions on all completed applications and claim submissions within five working days of receipt.
It is accessed through Business Link’s expert brokers and all applications are assessed on the contribution they make to improving the economic prosperity of the region.
Carol Kerr, programme manager for the NEEIC, said: “Rural enterprise is a vital part of the region’s economy and its development is key to the ongoing prosperity of the region.
“All rural businesses are eligible to apply for NEEIC support and the fast, simple service we provide is designed to make the funding process accessible and effective.”
Businesses with an existing relationship with Business Link should ask their account manager for information about the RDPE investments available, or any business can call 0845 600 9 006 to find out more.
The Rural Development Programme for England 2007-2013 is jointly funded by Defra and the European Union, with the aim of delivering targeted support to rural businesses and communities. It is managed in North East England by One North East, Natural England and the Forestry Commission.
The RDPE investment being managed by One North East combines larger projects to help many businesses in different sectors of the rural economy - including bioenergy and land-based skills, and projects adding value to agricultural and forestry products - with smaller investments to help individual businesses to start-up, grow or diversify, and support to develop more sustainable rural communities.
For more information on RDPE in North East England, visit: www.rdpenortheast.co.uk
For more information on RDPE, visit:
http://ec.europa.eu/agriculture/rurdev/index_en.htm
http://www.defra.gov.uk/rural/rdpe/index.htm
Ends.
For more information, contact Claire Mason (press office) on 0191 229 6429 / 07765220755 or email Claire.mason@onenortheast.co.uk
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