A £660m cash pot is set to boost the growth prospects of North businesses in a second Northern Powerhouse Investment Fund.
The next round of NPIF money has been assigned to the Government’s economic development bank, the British Business Bank, in moves to address market gaps and regional imbalances in access to finance.
Businesses looking to grow will be able tap into the funds until December 2023, following confirmation of the fund from Chancellor Rishi Sunak in this week’s Autumn Budget.
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The news comes as the original NPIF approaches its £300m milestone, having invested over £291m into 937 Northern SMEs in deals that have attracted an additional £377m of private sector investment.
First launched four years ago, NPIF offers microfinance between £25,000 and £100,000, debt finance between £100,000 and £750,000 and equity finance up to £2m. It supports almost one in five equity deals across the North.
The next generation of NPIF will include the North East LEP area for the first time, and a collaborative approach will now begin with key regional stakeholders across the North.
Catherine Lewis La Torre, CEO of British Business Bank, said: “Ensuring that investment reaches businesses of all sizes and in all sectors the 海角视频 – including Northern cities, towns and rural areas - is vital if we are to realise the goals of addressing regional imbalances.
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“NPIF has been transformative for the Northern business community.
"We have consistently seen the impact that funding can have on organisations, whether that’s enabling them to build skilled teams, create new products and services, or adopt more sustainable operations – something that the Bank is driving through its commitment to supporting SMEs in reaching net zero.
“The next phase of NPIF will enable even more Northern businesses to adapt, innovate, and scale – ultimately creating an even stronger North.”
Lucy Winskell, chair of the North East Local Enterprise Partnership, said: “This significant injection of funding into the North is hugely welcomed and signifies Government’s confidence in northern businesses to scale up and compete in global markets. It enables the continued investment in small and medium businesses in the North East to deliver on their growth plans, creating more and better jobs here in the North East and builds on the success of the current North East Fund.”
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Roger Marsh, chair of the NP11 group of Northern LEPs, said: “NPIF was the first time that HM Government, the LEPs and the British Business Bank came together to pilot a new approach in supporting small businesses accessing finance. The pilot model has been proven and has since been replicated in other regions including the Midlands due to its demonstration of supporting growth, innovation, employment and skills across the North.
“This announcement of additional investment for an NPIF II that includes the North East LEP area is excellent news. It will undoubtedly build on the success of NPIF and enable support for more northern businesses to grow and help build back the economy in the North.”
More information on the £660m fund is set to be issued soon.