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6 th Mar 2017

Launch of £400 Million Northern Powerhouse Investment Fund (NPIF)

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The Northern Powerhouse Investment Fund (NPIF) aims to provide smaller businesses with increased flexibility in accessing different types of funding and produce greater levels of investment across the Northern Powerhouse region.

The British Business Bank is working in partnership with 10 northern Local Enterprise Partnerships (LEPs) in the NPIF area to boost business growth in the north of England and create a regional economy that is amongst the most competitive in the UK. 

The Fund is expected to contribute to better economic outcomes for the regions’ businesses, growth and jobs.

More than £400 million has been set aside to distribute through various types of finance options. LEPs and the British Business Bank have worked together to determine the types of finance that will best meet the needs of businesses across the NPIF area. 

Market assessments were conducted in the North East, North West and Yorkshire and the Humber, which have identified the following common gaps in the provision of finance:

• Microfinance: provision of small business loans (from £25,000 – £100,000)
• Debt: provision of business loans (from £100,000 – £750,000)
• Early-stage and later-stage equity: provision of equity funding (from £50,000 – £2 million)

Debt finance can be used for hiring staff, purchasing machinery, moving premises or as working capital to finance a big order.

Microfinance can be used to fill the funding gap for growth and development projects and is available for a range of purposes like working capital, funding expansion projects, leasing commercial premises and asset acquisitions. Equity finance is for businesses that are looking to grow at a rate that cannot be supported through borrowing.

Small and medium-sized enterprises (SMEs) with growth potential that are setting up or operating in areas covered by the Northern Powerhouse will be eligible to apply. 

The participating LEPs are: Liverpool City Region, Lancashire, Greater Manchester, Cumbria, Cheshire and Warrington, York, North Yorkshire and East Riding, Sheffield City Region, Tees Valley Unlimited, Leeds City Region and Yorkshire and the Humber.

Assistance may be sought at any time.

Further information can be accessed at the dedicated NPIF website.

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