The Northern Powerhouse Investment Fund II, supported by the European Regional Development Fund, provides commercially focussed finance through Small Business Loans, Debt Finance, and Equity Finance funds.
Funding
The Northern Powerhouse Investment Fund II (NPIF II) will build on the success of the first Northern Powerhouse Investment Fund and will deliver a £660 million commitment of new funding to smaller businesses.
The fund which now includes the whole of the North East aims to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England.
The Northern Powerhouse Investment Fund II offers a range of commercial finance options with smaller loans and debt finance from £25,000 to £2 million and equity investment up to £5 million. The fund covers the whole of the North, including rural, coastal and urban areas.
It is increasing the supply and diversity of early-stage finance for smaller businesses across the North of England, providing funds to businesses that might otherwise not receive investment and helping to break down barriers in access to finance.
The new fund has embedded Environmental, Social and Governance (ESG) awareness into its design and will help support the UK economy’s transition to Net Zero.
Funding available
- Smaller loans – £25,000 to £100,000: Whether you are an entrepreneur wishing to start your own business, or an early-stage or more established small business looking to grow, you may find it difficult obtaining the finance you need. Smaller loans can be used to fill the funding gap for growth and development projects.
- Debt finance – £100,000 to £2 million: As small businesses grow, large injections of capital are often needed to move them to the next level. The Northern Powerhouse Investment Fund II could help smaller business owners to deliver their business ambitions, as our debt finance option is designed for smaller companies that can demonstrate growth potential.
- Equity finance – up to £5 million: Equity finance can be particularly important for new and innovative companies with high growth potential as it can provide long-term backing to fund business growth through to revenue and profit. In simple terms, equity finance is raising capital through the sale of shares in a business.
How do I apply for funding?
Enquiries and applications are made direct to NPIF II’s selected fund managers. NPIF II cannot provide financial or business advice to businesses seeking funding and businesses may wish to engage their own accountant or business adviser if application assistance is required.
Where do I need to be based to apply for a NPIF II investment?
NPIF II covers the whole of the North of England, including rural, coastal and urban areas. Investments can be made in businesses that are headquartered in the North or have a significant operating presence there.