A MULTI-million pound fund to support the growth of hundreds of North East businesses will go live early next year.

The North East Fund – formerly known as JEREMIE 2 – will offer different types of equity investments and loans to firms to drive local growth, investment and job creation in the region.

The agreement has been signed by the seven local authorities in the North East, North East (SPV) Limited and the Department for Communities and Local Government (DCLG) which has responsibility for the European Regional Development Fund (ERDF) in England.

The announcement has been heralded as a milestone in public sector support for regional business growth and will be a catalyst to access significant European Investment Bank (EIB) investment.

Over the next five years, the North East Fund will pump loan, equity and mezzanine funding worth £145m into new and existing fast-growing businesses across a wide range of sectors which will spearhead new regional economic growth.

The North East LEP led the project team negotiating for the region, and agreed with Government to develop the North East Fund last year, to ensure that the super fund would be managed and spent exclusively in the North East.

It sits alongside the Northern Powerhouse Investment Fund (NPIF) operating in other LEP areas to drive the growth of businesses right across the Northern Powerhouse area.

The new fund combines ERDF backing with EIB finance and legacy money generated from historical funds which have operated in the North East LEP area since 2003.

It is estimated that the North East Fund could provide financial support for 600 businesses; help create around 2,500 jobs in the next five years and a further 1,000 jobs throughout the life of the fund.

And it is envisaged it will deliver a legacy fund of up to £80m over the next decade for further financial support to companies.

North East LEP chairman Andrew Hodgson said: “Securing the North East Fund for investment into our region is fantastic news and the result of many months of hard work by regional partners with Government.

“The agreement signed with Government ensures the Fund stays in the North East, to back the investment plans of our fastest growing, brightest firms.

“It is a prime example of public sector partners working together to achieve maximum return for the North East economy.”

Andrew Mitchell, of the project team charged with delivering the Fund, said: “This is great news for the region.

“Despite the uncertainty created by the European Referendum, this is a vote of confidence in the North East on the part of the European Investment Bank which will be a key partner in the fund.”