Small businesses applying for finance from investment funds in the north-west

Small businesses are increasingly applying for private wealth investment from funds in the north of England.

The Financial Times reports that more than one in ten applications for investment in the north-west have come from outside the region, with this percentage reaching a fifth in Yorkshire.

There are currently three investment funds provided by the EU that are available to businesses from the north or are willing to relocate to the area.

These public grants have been created to attract private sector firms to areas hit by the recession and public sector grants with the hope of boosting the economy.

Andy Leach, chief executive of North West Business Finance, which oversees six investment funds worth £185 million, told the news provider: "This is finance on commercial terms. It is not a grant.

"These businesses are interested in the region for other reasons, and this is just part of the attraction."

If these funds attract businesses to areas such as Manchester there will be more opportunity for Brits with private wealth to invest in the area.

The government recently launched four new enterprise zones in Birmingham, Leeds, Bristol and Sheffield.
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