UK Government office, Communities and Local Government (“CLG”) has announced that it will offer a further £20 million of Government and private investment to support new and growing small businesses in or near the former English coalfield regions, to be managed on its behalf by venture and growth capital fund manager, EV.

This further commitment builds on the success of the Coalfields Enterprise Fund, CLG’s first investment Fund which was launched in 2004, since when it has provided some £6.7 million of investment, attracting private sector leverage in excess of £31 million to the eligible areas and created some 400 new regional employment opportunities.

Speaking at the recent Alliance Annual Conference, Housing Minister, John Heleay, also confirmed that the lifetime of the existing £10 million Coalfields Enterprise Fund would be extended to 2014.

These measures combined – to be known at the Coalfields Funds – are expected to generate further investment from private companies totalling as much as £75 million over the next five years, and help create and protect hundreds of jobs in the former coalfield areas.

John Healey said, “Entire communities were left devastated by the collapse of the coal industry 25 years ago. More recently, they have been dealt another blow by the global economic downturn.

Over the past decade, the Government has given the coalfields areas over £500 million to help them recover. They must continue to get the support they need as they face this new challenge.

That’s why I have announced a new £20 million fund to help small businesses get through the downturn, expand and offer valuable, much-needed, job opportunities to local people”.

Jonathan Diggines, Chief Executive of EV, commented, “The Coalfields Funds will offer equity and equity related investment of up to £1 million and more in the right situations, to SMEs located in the eligible areas with the aim of encouraging entrepreneurship and generating employment in the regions previously heavily reliant on the coalmining and related industries. In the five years we have managed funds in the English coalfields, we have encountered many businesses demonstrating talent, energy, innovation and the potential to grow. We believe that the new funds will lead to successful businesses developing in the English coalfields”.