New £10m fund to support business

A £10m fund has been set up to help businesses in the East respond to the current worsening economic situation.

The support from the East of England Development Agency (EEDA) will target start-ups and firms in biotech and life-science and manufacturing.

Richard Ellis, chair of EEDA, said: "These are the industries which make up the engine of the region's economy."

The centre-piece of the package is a £5m revolving loan fund to provide debt finance for early-stage ventures.

"The £10m package set up with government help will provide advice and financial support to help key businesses succeed in the global economy," Mr Ellis said.

Treasury minister Angela Eagle and Minister for the East of England, Barbara Follett, were at the launch of the fund.

The ministers also highlighted EEDA's new £2.6m manufacturing, design and innovation service and its low-carbon venture capital fund which works with the private sector to make £30m available for investment in high growth, clean technology companies.

'Tough times'

Mr Ellis said: "Although businesses, families and residents are going through some tough times, the economy in the East of England is resilient and what we need is to balance immediate, effective support with a focus on the long-term goal.

"Our role during this period is to make sure the region's businesses and the 5.5 million residents know what support is available to them."

Ms Eagle said: "The East of England is being affected by global uncertainty but our regional economies are much stronger now after years of investment and growth.

"Here in the East of England we are determined the government along with regional and local agencies such as EEDA will all work together to ensure that businesses and households get the support they need."

Ms Follett said: "The regional economy is the UK's fourth-largest and has overtaken other areas to become the country's top location for private-sector research and development."

EEDA provides business support in Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk.