£660m fund launched to support northern businesses

The British Business Bank has announced the launch of its second Northern Powerhouse Investment Fund, making £660m available to support businesses.

The Northern Powerhouse Investment Fund II will offer a range of commercial finance options with loans from £25,000 to £2m and equity investment up to £5m.

The fund will address an identified funding gap in the North of England and increase the supply and diversity of early-stage finance for smaller businesses.

Ken Cooper, managing director, venture solutions, at the British Business Bank, said: "The launch of the Northern Powerhouse Investment Fund II builds on the success of its predecessor. It will further increase the supply and diversity of early-stage finance for smaller businesses in the region, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance. 

“The first Northern Powerhouse Investment Fund has facilitated the investment of more than £1bn into northern businesses since it launched, and has been instrumental in the creation of thousands of new jobs and opportunities.

"We know that the levels of private debt lending and equity investment in the North of England remain below expectations given the region’s share of the UK’s smaller business population and that is something this next generation of the fund will continue to address by backing ambitious businesses that will drive sustainable economic growth.” 

The fund is part of a £1.6bn commitment by the British Business Bank, which will also launch similar programmes in the South West, Wales, Scotland and Northern Ireland, along with a follow-on fund for the Midlands.