Northern businesses secure £80 million in NPIF II funding in first year since launch

In its first year since launching, the Northern Powerhouse Investment Fund II (NPIF II) has successfully completed over 200 investments into small businesses across the North of England.

Operated by the British Business Bank, NPIF II is a £660 million fund that provides loans and equity finance options for Northern smaller businesses that might otherwise not receive investment. The purpose of NPIF II is to break down barriers in access to finance by providing loans from £25,000 to £2 million and equity investment up to £5 million to start up, scale up, and stay ahead. Praetura, FW Capital, River Capital and GC Business Finance are responsible for delivering NPIF II funds across the North West, enabling ambitious businesses to access small loans, debt, and equity finance options.

Building on from the success of the first Northern Powerhouse Investment Fund which launched in 2017, NPIF II was extended to encompass the entirety of the North of England by expanding its reach to cover the whole of the North East.

In its first year in operation, NPIF II has delivered investment to a range of smaller businesses, supporting them in achieving their growth objectives.

Sue Barnard, senior investment manager at the British Business Bank, said:

“With thousands of new businesses launching in the North in 2024, the region is full of ambitious and driven entrepreneurs and NPIF II is helping them to take their businesses to the next level. From a thriving café like Black Milk in Manchester, to Knowsley-based electromechanical specialist Central Group, and The Padel Club in Cheshire bringing an up-and-coming sport to the region, we’re backing businesses with big ideas and strong local roots.

“More than £80 million has already been invested across the North in NPIF II’s first year, and that early momentum shows just how much appetite there is for growth. It’s been especially rewarding to support businesses leading the way in innovation, sustainability, and inclusivity and there’s so much more to come.”

Commenting on the one-year milestone, Adam Kelly, Managing Director, Co-Head of Funds at the British Business Bank, said:

“Our focus has always been towards helping smaller businesses achieve their ambitions by gaining transformational access to finance. From padel courts to cafes launching products in national stores, the Northern Powerhouse Investment Fund II has done exactly that by empowering local business leaders and entrepreneurs to grow their organisations.

“In its first year, over £80m invested into the Northern economy is a fantastic feat, and we’re proud to have supported North West-based businesses at the forefront of innovation, or building the modern, green economy, and those led by underrepresented founders. This is only the first year of NPIF II and there are still so many great businesses out there looking for investment.”