Over 270 small businesses across the North of England have secured more than £100 million in investment from the Northern Powerhouse Investment Fund (NPIF) since the Covid-19 pandemic took hold in April 2020.
Of that total, Northern SMEs have received £35 million from equity investments; NPIF’s co-investors from the private sector have added a further £150 million. In total, 270 businesses across Northern England have received funding across nearly 400 transactions. A further £60 million has come from debt finance and £7 million through the NPIF’s microfinance programme.
The NPIF Debt and Microfinance funds have been able to offer Government’s Coronavirus Business Interruption Loan Scheme (CBILS) backed loans.
The NPIF investment has been crucial in supporting businesses to continue operating during the pandemic, as well as helping them to adapt by launching new products or services over the last year. This trend is particularly strong in the digital sector: 16 per cent of the total number of investments made since the UK’s first lockdown have benefited information and communication businesses. In addition, 21 per cent of investments were made into advanced manufacturing businesses, and 14 per cent were made in the health and life science sectors.
As part of the 2020 Spending Review, the Chancellor announced an additional £100m allocation for the Northern Powerhouse Investment Fund, bringing the total for investment for Northern businesses to over £500m.
Grant Peggie at British Business Bank said:
Over the last year, we’ve seen real determination and agility from the small business community across the North. Whether it has been used to simply survive or to adapt and thrive, this pandemic has demonstrated the transformational impact that funding and ongoing support can have on business success.
“We’ve worked closely with Combined Authorities, Local Enterprise Partnerships, Growth Hubs, and other key stakeholders across the region to provide this level of investment and business support over the last year and we are proud that this collaborative effort is making a real difference to companies in the region.”