Northern Powerhouse Investment Fund supports SMEs with over £100m

Reaching its second anniversary of its launch, Northern Powerhouse Investment Fund (NPIF) is celebrating having directly invested £100m in 385 Northern-based SMEs.

The deals have attracted an additional £84m of investment from the private sector.

The £400m investment fund was launched in 2017 by the British Business Bank using funding from the European Regional Development Fund, HM Government and the European Investment Bank.

NPIF forms a key part of the BBB’s activities to help reduce regional funding imbalances and create economic prosperity in the North of England.

Jake Berry, MP for Northern Powerhouse Minister, said: “The Northern Powerhouse Investment Fund plays a vital role in supporting businesses to grow, innovate, create new jobs and boost skills across the Northern Powerhouse.

“The investments so far demonstrate what can be achieved when the Government works hand-in-hand with both the private and public sectors to support businesses and communities to thrive.”

NPIF has worked with 10 Local Enterprise Partnerships (LEPs), Combined Authorities, local accountants, fund managers and banks to provide both debt and equity finance to SMEs across the North West, Yorkshire and the Humber, and Tees Valley regions.

The funding has enabled businesses to scale up through product launches, expansion into new markets and investment in staff and infrastructure.

NPIF offers various funding options, including microfinance solutions between £25k and £100k, debt finance between £100k and £750k, or equity finance up to £2m.

Kelly Tolhurst, small business minister, added: “Having been a small business owner myself I recognise the importance of giving businesses the right tools to succeed, which is why I’m delighted to welcome the Northern Powerhouse Investment Fund’s milestone and its work with SMEs in the North.”

Recent NPIF investments include: Leeds-based Force24, which has developed one of the UK’s leading marketing automation platforms, has secured a £250k loan from NPIF - Mercia Debt Finance to further develop its product and introduce new features.

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.