New £660m investment fund launches for businesses in Northern England

New £660m investment fund launches for businesses in Northern England
Dan Martin
Dan MartinDan Martin Content & Events

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

Small business funding: How to use the money you raise

Small business funding: How much money should you ask for?

Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance journalist and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's news reporter and Bristol Local Leader. I have 20 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation as the website's news reporter and as the host of the Small Business sessions podcast. I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region. In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

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