£90m finance venture launched to give economic boost to region

The Minister for Regional Economic Development and Coordination joined more than 300 businesses, including corporate financiers, advisers, accountants and solicitors, at the launch of Finance Yorkshire at the Aspire in Leeds.

She said it would help hundreds of companies and create thousands of jobs in the region.

It is hoped that the four-year investment programme will particularly benefit companies involved in digital, low carbon and healthcare sectors.

James Newman, chairman of Finance Yorkshire, said it would bridge the funding gap left by banks and other commercial lenders.

"We are here to help as a gap fund. We are not here to compete with the banks," he said.

He added: "The motion is to build a permanent regional fund. When we come to the end of the investment period we will have hopefully created a legacy which means the fund is permanent."

Finance Yorkshire will provide seedcorn, loan and equity linked investments, ranging from 15m to 2m, specifically to help small and medium businesses meet the gaps in the funding they need for growth and development.

Yorkshire Forward provided 45m, with the rest of the money coming from the European Union and the European Investment Bank.

Ms Winterton said: "The recession has presented significant challenges for many people and businesses in Yorkshire, so I'm delighted to formally launch this new investment fund at such a crucial time in the region's recovery.

"Alongside other government support measures, this fund will help drive economic growth across Yorkshire and the Humber by providing finance to hundreds of small and medium-sized businesses and start-ups, helping them to flourish and creating thousands of new jobs."

Finance Yorkshire builds on the success of the now fully-invested Partnership Investment Finance, which invested 42m for qualifying businesses, and the South Yorkshire Investment Fund, which invested 60m in South Yorkshire.

Finance Yorkshire's event follows the launch of the 3m Yorkshire and Humber Understanding Finance for Business programme this week in Leeds.