York firms are urged to apply to the new Northern Powerhouse Investment Fund II (NPIFII), a £660million fund from the British Investment Bank.

Since launching the first Northern Powerhouse Investment Fund (NPIF) in 2017, it has delivered £445m of direct and private co-sector investment into 552 businesses, helping to create nearly 4,300 jobs across Yorkshire and Humberside.

The second fund extends the programme to the North East, aiming to help businesses scale up or continue their growth journey.

The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

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In Yorkshire and the Humber, Mercia will deliver debt finance (£100,000 to £2m), as well as equity finance (up to £5m) to smaller businesses, with Business Enterprise Fund (BEF) delivering smaller loans between £25,000 and £100,000.

A North Yorkshire firm already benefiting from NPIF investment is Floks, a Boroughbridge-based luxury bedding brand that specialises in sustainable bedding, all made from British wool and organic cotton. Securing funding in 2023, it used it to elevate its marketing activity and develop new products to expand its range.

Sophie Platt,  managing director at Floks, said: “The Northern Powerhouse Investment Fund’s involvement is one of the key reasons why we are in the strong position we are in today. In the depths of lockdown, I had dreams of owning my own business. With NPIF funding we’ve been able to enter some of the major high street shops, and I’m excited to continue our businesses development.”

Kevin Hollinrake MP, Minister of State for Enterprise, Markets, and Small Business, said: “This new fund will unlock millions in equity and loans for SMEs across the North to realise their full potential and builds upon British Business Bank’s vital work ensuring that any small business owner in the UK can scale up and grow. 

“SMEs are the engines of growth for our economy and across government we are improving access to finance, cutting red tape and removing barriers to ensure that they can go further and faster than ever before.”

Louis Taylor, Chief Executive of the British Business Bank, said: “The success of the first Northern Powerhouse Investment Fund has proven the instrumental change that access to finance can have for small businesses. From creating hundreds of jobs to developing groundbreaking products, we have seen companies that previously lacked funding options accelerate forward in their growth journeys, which has ultimately benefited the whole of the Northern economy”

“This is why it was important to continue the Northern Powerhouse Investment Fund into its next phase. With further funding available, and a greater geographical reach in the North East, the Northern Powerhouse Investment Fund II will engage more stakeholders across the regions, bringing the business community closer together to create more opportunities for entrepreneurs everywhere.”

Following a recent official launch in Leeds, the British Business Bank will be holding a a roadshow of events for small business finance intermediaries across the region to learn more about the Fund. Destinations include Newcastle (18th April); Manchester (24th April), Sheffield (30th April).

Further dates for roadshow events in Liverpool, Hull, Lancashire, Tees Valley, York, Cheshire, Durham, Cumbria and Northumberland will be announced shortly.

Details of the fund can be found at: www.northernpowerhouseinvestmentfund.co.uk