The North East’s longest-standing business investor has been confirmed as a provider for the new iteration of the Recovery Loan Scheme (RLS), with more than £4m being made available to regional firms.
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 firms as part of its wider investment offering of up to £500,000.
Since first being accredited for the Recovery Loan Scheme in summer last year, NEL has made 29 RLS investments in North East businesses with a total value of over £4.15m.
They 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.
The new iteration of the Recovery Loan Scheme, which is scheduled to run until June next 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 earlier Covid-19 loan guarantee schemes are still eligible to access finance under the RLS if they meet all other eligibility criteria.
Over the last two years, NEL has also been providing loans of up to £250,000 under the Coronavirus Business Interruption Loan Scheme (CBILS) and the Recovery Loan Scheme in conjunction with its usual Growth Capital Fund and Small Loan Fund lending activity.
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.”
For more information about NEL’s investment criteria, visit www.nel.co.uk or contact the investment team on 0345 369 7007.