A new £90m venture capital and loan fund to help growing businesses is ready to start investing in businesses in Bradford and across the region.

Finance Yorkshire, which had already secured £45 million from the European Regional Development Fund and Yorkshire Forward, has also received £45m of matching funding from the European Investment Bank.

Finance Yorkshire was launched in March in front of 1,100 financial intermediaries and business people in several centres across Yorkshire, including Skipton. Since then it has been in lengthy negotiations with the European Investment Bank to complete the final stages of the funding.

Fund managers have been dealing with hundreds of advance enquiries and applications from companies in order to speed up the administration process once the finance is available. They have also been briefing businesses and financial intermediaries about Finance Yorkshire’s planned operations.

It is estimated that the fund will help to create or safeguard almost 6,000 jobs and boost the regional economy by more than £600m. Finance Yorkshire will be making loans or investing in companies until the end of 2013.

After that, it expects the results of its successful investment to help create an evergreen legacy fund of around £50m by 2019. This will be added to the expected legacy funds created by two previous similar funds which have been fully-invested.

The new fund has the support of the coalition Government, with business minister Mark Prisk saying: “The Finance Yorkshire fund is an important tool to support business growth and help drive economic growth in the region.

“It is one of the Government’s key priorities to ensure that this fund and all other national and regional provision will in future become part of a strong, single and coherent offer of finance and investment for dynamic and developing businesses.”

James Newman, Finance Yorkshire chairman, said: “The confirmation of the European Investment Bank funding is terrific news for Yorkshire and a significant boost for the local economy. At a time when finance and credit availability are being tightened, to have £90 million available to support business growth and development is a real shot in the arm for many small and medium-sized enterprises.”

Finance Yorkshire will be looking to provide seedcorn, loan and equity-linked investments, ranging from £15,000 to £2m to help small and medium businesses meet funding gaps and help growth and development.

Finance Yorkshire has signed contracts with the fund managers responsible for investing the money. NorthStar Equity Investors, in association with NEL, EV and FSY, will manage the fund.

Mr Newman added: “The fund managers we have chosen are some of the best in the country in delivering this kind of finance to businesses. They are extremely knowledgeable and experienced in this field and we are pleased to have them on board.”