1. EU Funds in the North East
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
256 bn euros allocated to ERDF/ESF
12.5 bn euros invested in financial instruments
20 bn euros expected to be invested in financial instruments
Over 500,000 jobs to be created

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

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

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)
Invested
Over £400m
972 different SMEs
Jobs
> 3,700 created
3,600 safeguarded
Returns
£72m returned to date
£80m legacy forecast

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