New £660m investment fund launches for businesses in Northern England
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Posted: Thu 21st Mar 2024
The British Business Bank has unveiled a new £660m fund providing loans and equity investment to businesses in the North of England.
The Northern Powerhouse Investment Fund II follows the first £400m Northern Powerhouse Investment Fund which was launched in 2017 to fund businesses in the North West, Yorkshire and the Humber and Tees Valley. The new scheme has a wider reach by including the whole of the North East.
The funding is aimed at increasing the supply and diversity of early-stage finance by providing options to firms that might otherwise be unable to secure investment.
Loans of between £25,000 and £2m and equity investment up to £5m are available. Find details on how to apply for funding here.
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 into its next phase. With further funding available, and a greater geographical reach in the North East, 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."
Small business minister Kevin Hollinrake added:
"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."
The Northern Powerhouse Investment Fund II is one of several British Business Bank schemes aimed at evening up regional disparities when it comes to accessing business finance. The government first announced the initiatives in the 2021 Autumn Budget.
The other schemes are:
Related Enterprise Nation resources
Fund your business via the Enterprise Nation Funding Hub
Small business funding: How to choose the right type for you
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