FOREST firms and ventures in a defined former coalfields area can apply for up to £1million in development cash, it was announced on Monday.

The Coalfields Funds offer sums of between £40,000 and £1 million to small and medium-sized businesses at all stages of their development.

The investment, which is in the form of equity funding, can be used to support start-ups and early stage businesses, provide growth capital for more established businesses, as well as funding mergers, acquisitions and management buyouts.

Applications are open to companies situated in the former coalfield area including Mitcheldean, Drybrook, Cinderford, Upper Soudley, Whitecroft, Coleford, Upper Lydbrook and Ruardean. Companies which draw their workforce from these areas may also be eligible.

The Coalfields Funds were established in 2004 to support the growth of businesses and encourage entrepreneurship in the former English coalfields regions and, so far, have made 28 investments.

The funds are managed by venture and growth capital provider Enterprise Ventures Ltd (EV).

Investment director Simon Ward said: "At a time when many companies are struggling to find funding, we want businesses within the Forest of Dean to be aware that the Coalfields Funds can offer finance for growth and are actively seeking to invest.

"We are on the lookout for sound businesses with a solid growth plan and can offer funding for a wide range of purposes. We will also work with the management team, offering support and guidance to ensure the business achieves its full potential."