European Regional Growth Fund:

The European Regional Development Fund was set up 1975 to stimulate economic development in the least prosperous regions of the European Union (EU). As EU membership has grown, the ERDF has developed into a major instrument for helping to redress regional imbalances. The Department for Transport, Local Government and the Regions manages the ERDF in England.
ERDF is aimed at economic regeneration projects promoted by the public sector. This involves:

• Government departments
• regional development agencies (RDAs)
• local authorities
• further and higher education establishments
• other public bodies
• voluntary sector organisations

This by no means excludes the private sector, which promotes and helps to fund high quality projects that meet ERDF objectives.
Generally, we do not pay ERDF grants direct to profit-making private sector companies. But in certain circumstances, the fund can help the development of small and medium-sized enterprises (SMEs). We encourage private sector companies to present applications in partnership with a public sector body.