Northern Powerhouse Investment Fund announces its first investments
Earlier last month, the Northern Powerhouse Investment Fund announced its first investments following the launch of the fund late in February.
More than £240K has been invested into SMEs from across the North to assist with growth plans. The £400 million investment fund aims to assist the region’s one million private sector businesses with their growth plans.
The fund, labelled as “The Northern Powerhouse Investment Fund” (NPIF) aims to help SMEs by providing funds from the 10 Local Enterprise Partnerships (LEPs) and the Government-backed British Business Bank. The government recognised that there is a “massive untapped economic potential”, and are making the funds available to businesses across the North West, Yorkshire, the Humber and the Tees Valley.
The NPIF allows fund managers to allocate the funds in three of the following ways:
- Microfinance (£25K-£100K)
- Business loans (£100K-£750K)
- Equity finance (£50K- 2M)
The funding is aimed to boost the long term growth of the region, and is aimed as SMEs looking at:
– Funding expansion projects
– Leasing new commercial premises
– Making asset acquisitions
– Hiring a new team
– Purchasing new machinery or equipment
– Launching a new product or service
– Filling gaps in working capital
Many businesses are eligible, ranging from new start-ups, to established SMEs, or businesses looking to relocate to the North of England.
Paul Stringer, commenting on the Northern Powerhouse Investment Fund said: “It’s clear that the Government is setting a clear strategy on investing into the North of England. Allowing a real opportunity for businesses to implement their growth plans.
“Previously, we’ve helped businesses on a spectrum of sizes with funding, and there’s been a clear need for a fund that allows smaller businesses to compete. We’re sure that many of our clients will be seriously considering this funding.”
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The information was correct at time of publishing but may now be out of date.