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NPIF supports £184million of investment across the North

NPIF supports £184m of investment
  • Over 440 investments completed across 10 LEP areas
  • Combined value of investments totalling £184m, including £84m leveraged from the private sector

As it reaches the second anniversary of its launch, the Northern Powerhouse Investment Fund (NPIF) is celebrating having directly invested £100m in 385 Northern-based SMEs, in deals that have attracted an additional £84m of investment from the private sector.

The £400m investment fund was launched in 2017 by the British Business Bank using funding from the European Regional Development Fund, HM Government and the European Investment Bank. NPIF forms a key part of the BBB’s activities to help reduce regional funding imbalances and create economic prosperity in the North of England.

Over the last two years, NPIF has worked with 10 Local Enterprise Partnerships (LEPs), Combined Authorities, local accountants, fund managers and banks to provide both debt and equity finance to SMEs across the North West, Yorkshire & Humber and Tees Valley regions.

The funding has enabled businesses to scale up through product launches, expansion into new markets and investment in staff and infrastructure. NPIF offers various funding options, including microfinance solutions between £25,000 and £100,000, debt finance between £100,000 and £750,000, or equity finance up to £2m.

Recent NPIF investments in Leeds City Region include:

  • Leeds-based Force24, which has developed one of the UK’s leading marketing automation platforms, has secured a £250,000 loan from NPIF - Mercia Debt Finance to further develop its product and introduce new features.
  • A £250,000 investment from NPIF – Mercia Debt Finance in York-based Hawthorne Contract Services Limited (Hcomm), a family-run business which provides high-quality, niche telecoms solutions. Hcomm will use the funding to tender for larger contracts and increase its headcount by employing a new project engineer and installations manager. The investment will also help bolster the company’s Apprenticeship Training Scheme.

Jake Berry MP, Northern Powerhouse Minister, said: “The Northern Powerhouse Investment Fund plays a vital role in supporting businesses to grow, innovate, create new jobs and boost skills across the Northern Powerhouse. The investments so far demonstrate what can be achieved when the Government works hand-in-hand with both the private and public sectors to support businesses and communities to thrive.”

Roger Marsh OBE, Chairman of the NPIF Strategic Oversight Board and Chair of Leeds City Region Enterprise Partnership (LEP), said: “As Chairman of NPIF’s Strategic Oversight Board, I am proud to see the impact these funds are having on innovation and job creation within the North of England. Having previously been stifled by a lack of funding options, we are now seeing Northern businesses make the most of this opportunity and unlock their true potential. It is encouraging to see the funds being deployed so quickly, and we hope to continue this momentum in NPIF’s third year.”

For more information about Northern Powerhouse Investment Fund, please visit www.npif.co.uk.

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