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Rural micro-businesses and farms are in line to receive a share of more than £2.5m to help them prosper and bring benefits to the region.

The cash, part of the Rural Development Programme for England, has been agreed by One North East and follows a successful £1m pilot scheme which has supported over 400 rural businesses in less than a year. 

Business Link will manage the funding over the next two years with individual applicants required to secure at least 50% of the total project costs from private sources.

One North East’s Rural Board Member, Ian Brown, said: “Small businesses are a huge part of the rural economy so it is important that we show our support by putting our money where our mouth is and making this funding available to those who can benefit from it.

“The funding will effectively seek mainstream support for rural businesses, helping them to realise aspirations of sustainability and growth.  This package of funding is great news for rural farms and micro-businesses which may receive essential funding during difficult times, allowing them to grow and prosper and consequently have a knock-on effect on the region’s economy.”

The project will 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.

Examples of projects funded under the pilot scheme include Tweddle Animal Farm near Hartlepool which received £2,500 to improve its indoor attractions to increase visitor numbers in the winter; Aldin Grange Farm near Bearpark in County Durham invested £9,500 in upgrading its farm shop and developing fishing lake facilities; Pastures New Livery, near Belsay, received support towards the costs of establishing an outdoor equine arena as part of the development of their diversified livery business.

The scope of the projects has been broadened which means that the installation of micro renewables on farms is also now eligible, for example wind turbines, micro-hydro, biomass boilers and heat exchangers.

Adrian Sherwood, One North East’s RDPE Manager, said: “RDPE acts as a catalyst for these businesses to access the wealth of mainstream support which is essential for their growth and sustainability.

“The funding is about helping rural businesses develop alternate sources of income which will in turn help our farming, food and forestry industries thrive and become more competitive, all together enhancing opportunity for rural businesses and communities in the region.”

Any farm or micro-business wanting to find out more about the full package of funding should contact Business Link on 0845 600 9006 or visit www.businesslink.gov.uk/northeast.  Business Link supports rural businesses in the region by providing access to up-to-date information and answering questions on running a rural business, from legislation to sourcing finance or funding. Eligibility criteria have been updated to target areas of priority, such as the land-based sector, highlighted under the previous funding regime.

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. 

RDPE is part of Solutions for Business, the Government’s package of publicly funded support products offering help to companies to start, grow and succeed. Solutions for Business makes it easier for companies to get the advice and assistance that they need.
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 Alison Laggan (press office) on 0191 229 6613 or alison.laggan@onenortheast.co.uk