Created: 27 February 2017
Last week, Andrew officially launched the £400 million Northern Powerhouse Investment Fund (NPIF), aimed at boosting the North of England’s economy and helping the region’s businesses realise their growth potential.
The British Business Bank’s recent Spotlight: The Northern Powerhouse Investment Fund publication reported that the North contributes £350bn per year in GDP – close to one fifth of the UK economy. The new fund aims to build on this foundation by providing smaller businesses with increased choice of funding and producing greater levels of investment across the Northern Powerhouse region.
Based in Sheffield, the Northern Powerhouse Investment Fund will work with 10 Local Enterprise Partnerships (LEPs); including the Humber LEP in our area, combined authorities and Growth Hubs, as well as local accountants, fund managers and banks, to provide a mixture of debt and equity capital to northern-based SMEs at all stages of their development. NPIF will provide funding to fund managers who will offer Microfinance (£25,000 – £100,000), Business Loans (£100,000 – £750,000) and Equity Finance (up to £2m).
The fund managers appointed to manage the Northern Powerhouse Investment Fund are:
· Microfinance: Business Finance Solutions & MSIF, Finance for Enterprise & Business Enterprise Finance
· Business Loans: FW Capital and Enterprise Ventures
· Equity Finance: Maven Capital Partners and Enterprise Ventures
Andrew Percy, Northern Powerhouse Minister, said: “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.
"This fund will provide important finance to help support small and medium sized businesses across the North, including locally in East Yorkshire and North Lincs."
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 more high-growth businesses than London and, at close to one fifth of UK GDP, is larger than the economies of Greece, Denmark, Austria and Belgium.
“The region has enormous untapped economic potential that can be realised by improved funding options and opportunities. The Northern Powerhouse Investment Fund represents a co-ordinated policy approach to help realise this potential across the North.”
Roger Marsh, OBE Chair of the Leeds City Region Enterprise Partnership (LEP) and Chair of the NPIF Strategic Oversight Board, said: “The North already boasts a diverse, dynamic and thriving economy with enormous untapped potential that, when realised, will bring huge economic benefits to the region and the UK’s competitiveness.
“This increased investment will complement the business support activity already delivering jobs and growth in the region. It offers SMEs increased flexibility in the funding available and will help boost business growth, create more high quality jobs and increase innovation.”
For more information about Northern Powerhouse Investment Fund, please visit www.npif.co.uk