A SCHEME to help create jobs and protect small firms in Tendring is set to be extended to 2020.

Tendring Council’s set up a £750,000 small and medium enterprises growth fund in 2015 in a bid to help 15 to 25 firms and create or safeguard 70 local jobs.

The scheme allows businesses to apply for grants of between £3,000 and £150,000, but they must also invest some of their own funds.

So far just five businesses have been supported with a total of £138,250, which has seen the creation of almost 20 full-time jobs and safeguarded 3.5 jobs, as well as leveraging £262,700 of private sector investment in the district.

Many other firms applied to the fund but were ineligible as they did not meet the sector criteria, but under new proposals being put forward the scheme would be widened so that more businesses are eligible.

Zoe Fairley, cabinet member for investment and growth, said: “Despite the significant reduction in funding to Tendring Council from central Government, forcing us to really consider how and where we spend our money, we are committed to supporting local businesses and job growth.

“By supporting businesses to grow and creating jobs, the whole local economy benefits and the general prosperity of our district will increase.

“That is why we are committed to helping companies in Tendring with initiatives such as the Blue Ribbon business awards, the Jobs and Careers Fair, and this business growth fund.”

A report said the growth fund is one of the key ways in which the council provides direct support for businesses through grant support to facilitate growth.

It added: "The scheme was established with a focus on a number of specific business sectors.

"Having reviewed the operation of the scheme it is clear therefore that changes can be put in place which will deliver an increase in take-up of the grants available and support greater growth across the Tendring business base."

The proposed changes include remove the focus on a specific number of businesses sectors and promote it to all businesses, except retail, with the main focus on job creation and business growth.

The changes could also include the council's directors being given power to make minor grants between £3,000 and £15,000 while a grants panel would be retained for major grants from £15,000 to £150,000.

The application process will also be redesigned to ensure that it is streamlined and does not include overly excessive stages of administration for the businesses and the council.

The revised scheme would be funded by a £250,000 allocation from the budget, which is already in place, and a sum of £236,750 would be reallocated to support other "economic growth activities".

It is hopes the revised fund will generate 20 grants and create an additional 40 full-time jobs.

Essex County Council decided to award £250,000 towards the original fund in 2015, but withdrew the second tranche of £125,000 because it perceived the take up of the grant to be too slow.

A final decision on extending the scheme and the planned changes will be made by Tendring Council's cabinet on April 20.