A funding pot of almost £20m has been created by a consortium of social finance providers to support small and medium-sized social enterprises and businesses in Yorkshire and the Humber.
Some £19.95m will be available over the next three years to start-up organisations working in the area, which suffers from an above-average unemployment rate.
The eight community development finance institutions (CDFIs) launching the scheme stepped in to fill a £10m funding gap created when Yorkshire Forward suffered budget restrictions and withdrew funding to the Community Development Finance Association, which was set to run the scheme. An additional £9.95m has been applied for from the European Regional Development Fund.
Mark Prisk, minister of state for business and enterprise, advised the funding was necessary for traditionally high-risk organisations: "This funding will be a vital step-up for businesses and groups that have been turned down by mainstream financial institutions," he said.
The scheme is being provided in collaboration with Finance Yorkshire, a regional fund for business growth providing loans above £15,000 to established businesses.
CFDIs involved in the fund:
- Bradford Enterprise Agency Ltd
- Donbac Ltd
- Goole Development Trust
- Hull Business Development Fund Ltd (Acorn Fund)
- North Lincolnshire Developments Ltd (Bees Knees)
- Saltend Community Development Ltd (Sirius)
- The Key Fund
- The West Yorkshire Enterprise Agency
