EU announces £1m small business fund

Date: 14th April 2009

The European Union is to provide struggling British small businesses with a £1 million grant to help them through the recession.

As part of the Grant for Business Investment (GBI) from the One North East development agency, the money will be used to improve the cashflow of small firms in deprived areas of the English region.

Local companies looking to find out more information on the scheme should contact their local accountant.

Dr Simon Goon, head of business development at One North East, said: "Specifically, GBI can be used to offset difficulties that businesses face in obtaining capital, especially with the current risk averse nature of the financial markets."

Dr Goon added that it was "a big boost" to be receiving further funding from Europe to help small businesses in the region.

At the start of April, the Federation of Small Businesses called on the government to provide additional support for the UK's rural enterprise community.