NORTH-west firms stand to benefit from up to £200 million in cash which Barclays is putting behind plans to support enterprise and business regeneration in the regions.

Up to £66 million is available for a new DTI initiative to make venture capital funding available to small and medium-sized businesses.

Barclays is the first high street bank to announce its support for Regional Venture Capital Funds which are endorsed and financially supported by the DTI.

The objective of the funds is to provide venture capital to start-ups and young companies looking to expand.

Many of these businesses currently find it difficult to obtain equity investment as they need amounts well below the usual venture capital threshold of £1 million plus.

The initiative is designed to plug the gap -- typical investments are anticipated to be between £1,000 and £250,000.

The RVCFs will be managed as separate companies and run by approved independent fund managers appointed by the Small Business Service and supported by the nine Regional Development Agencies.

Barclays has allocated more than £20 million in equity and more than £40 million debt. It is the first in a series of initiatives from Barclays' newly-created Urban and Regional Economic Development Unit.

The unit, which starts with a £200 million remit, will work in partnership with public sector bodies to create financial packages for small and medium-sized businesses and urban regeneration projects.

It is the first time that a specialist unit has been established by a UK bank with the specific objective of developing tailored borrowing solutions for business customers whose needs cannot normally be met by mainstream banking.

Trade and Industry secretary Patricia Hewitt said: "I am delighted that Barclays is supporting this key Small Business Service initiative. "With the support of Barclays as a key private sector investor, we will be able to help many smaller companies to grow."

Funds will become available later this year and through 2002.

The Regional Venture Capital Funds may also receive investment from other private sector companies and include public-sector pension funds.

A minimum of 25 per cent of the total value of the funds will be provided by the DTI.

More information is available on the websites: www.barclays.co.uk and www.sbs.gov.uk