
Small businesses in Cheshire and across the North of England are set to benefit from the launch of the new £660 million Northern Powerhouse Investment Fund (NPIF) II from the British Business Bank.
Since the launch of the first Northern Powerhouse Investment Fund in 2017, it has delivered over £570 million of direct and private sector co-investment into 608 businesses in the North West, creating close to 3,500 jobs.
The Northern Powerhouse Investment Fund II will enable more businesses to access the Fund to start up, scale up or continue on their growth journey. NPIF II will drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses.
Three fund managers have been appointed to manage the fund in the North West. GC Business Finance & River Capital will manage the smaller loans part of the fund (£25,000 to £100,000), FW Capital will be responsible for larger loans (£100,000 to £2 million) and Praetura Ventures will manage equity deals (up to £5 million).
A business already benefiting from NPIF investment is South City Studios, a Stockport-based premier pre-production and rehearsal facility for bands of all ages and genres. Funding from NPIF provided the stepping stones to create the first pre-production room available in the North of England and provides private VIP facilities for the artists and their sound and lighting technicians to prepare for live gigs and tours.
Paul Bowe, Director at South City Studios, said:
“The Northern Powerhouse Investment Fund’s involvement enabled us to take a Stockport business to a global stage, having welcomed international artists through our doors including Johnny Marr, Elbow, Blossoms, Fuzzy Sun and Loyle Carner.”
Louis Taylor, Chief Executive of the British Business Bank, said:
“The success of the first Northern Powerhouse Investment Fund has proven the instrumental change that access to finance can have for small businesses. From creating hundreds of jobs to developing ground-breaking products, we have seen companies that previously lacked funding options accelerate forward in their growth journeys, which has ultimately benefitted the whole of the Northern economy.
“This is why it was important to continue the Northern Powerhouse Investment Fund into its next phase. With further funding available, and a greater geographical reach in the North West, the Northern Powerhouse Investment Fund II will engage more stakeholders across the regions, bringing the business community closer together to create more opportunities for entrepreneurs everywhere.”
Kevin Hollinrake MP, Minister of State for Enterprise, Markets, and Small Business, said:
“This new fund will unlock millions in equity and loans for SMEs across the North to realise their full potential and builds upon British Business Bank’s vital work ensuring that any small business owner in the UK can scale up and grow.
“SMEs are the engines of growth for our economy and across government we are improving access to finance, cutting red tape and removing barriers to ensure that they can go further and faster than ever before.”
Following today’s official launch in Leeds, the British Business Bank will be holding a a roadshow of events for small business finance intermediaries across the region to learn more about the Fund. Destinations include Newcastle (18th April); Manchester (24th April), Sheffield (30th April).
Further dates for roadshow events in Liverpool, Hull, Lancashire, Tees Valley, York, Cheshire, Durham, Cumbria and Northumberland will be announced shortly.