British Business Bank to inject £400m into Northern Powerhouse
New fund will help small businesses access everything from microfinance up to £100,000, business loans up to £750,000 and equity finance up to £2m.
The British Business Bank has today announced the launch of its £400m Northern Powerhouse Investment Fund (NPIF), to provide a major financial boost to the region’s businesses.
Based in Sheffield, the NPIF will look to provide small businesses with a greater choice and higher levels of funding including microfinance of between £25,000 and £100,000, business loans of £100,000 to £750,000 and equity finance up to £2m.
Provided by the European Regional Development Fund (ERDF), the European Investment Bank (EIB), the Department for Business, Energy and Industrial Strategy (BEIS) and British Business Finance Ltd, funding will be allocated to 10 Local Enterprise Partnerships (LEPs) across the North West, Yorkshire and Humber and the Tees Valley.
The British Business Bank’s recent Spotlight: The Northern Powerhouse Investment Fund report estimated that the North generates £350bn of GDP per year, amounting to around one fifth of the UK economy.
Keith Morgan, CEO at British Business Bank, said: “The North of England has a long and proud history of driving global innovation and economic progress.
“The region has enormous untapped economic potential that can be realised by improved funding options and opportunities. The NPIF represents a coordinated policy approach to help realise this potential across the North.”
Andrew Percy, Northern Powerhouse minister, commented: “Our efforts to build the Northern Powerhouse are delivering real results for local people, with over one million businesses involved, foreign direct investment up by a quarter and 187,000 jobs created in the past year alone.
“This dedicated £400m will help us go even further, supporting smaller businesses across the region to reach their full potential and helping to create an economy that works for everyone.”