The fund, created in collaboration with Big Issue Invest and Power to Change, allows access to flexible finance and support for these organisations, including community businesses, social enterprises, and cooperatives.
Socially trading organisations, numbering approximately 3,500 in the North of Tyne region, provide commercial services with direct social benefits.
North of Tyne Mayor, Jamie Driscoll said: “We need more socially trading organisations with good business plans that serve their communities.
“This is a practical support offer, which has been designed by and for, the people who will use it.
“It’s flexible- hence the name – and it can be used for just about anything. It’s there to help socially trading organisations in the North of Tyne reach more people and do more good.
“In the past small businesses, social enterprises, and co-operatives have struggled to find the money they need to grow and thrive. Financial support has often been provided by commercial banks or hedge funds meaning the repayment leaves our region.
“The money in our fund will be recycled, supporting more local businesses and creating more jobs in the North East.”
To register interest and find out more, email: Socialeconomy@northoftyne-ca.gov.uk