The British Business Bank launched this £660 million fund in March 2024 to provide essential capital to promising businesses across the North East, North West, and Yorkshire & Humberside regions. NPIF II plans to eliminate funding shortages for growing businesses by providing loans between £25,000 to £2 million and equity investments up to £5 million, supporting innovation and economic growth in underdeveloped areas.

Understanding NPIF II and Its Objectives

NPIF II seeks to eliminate persistent financial access gaps across Northern regions while guaranteeing SMEs in underdeveloped areas receive equitable support. The second Northern Powerhouse Investment Fund builds upon the achievements of its predecessor, which generated £570 million in investments and established almost 3,500 jobs to advance its mission.

• Expand the range and availability of early-stage financial options for small and medium-sized enterprises.
• Facilitate innovative business startups and their ability to expand and maintain growth.
• Advance economic equality across regions by reducing financial barriers.
• Support the UK government's "levelling up" agenda through opportunity creation and economic expansion.

How NPIF II Works

A network of expert regional fund managers manages the £660 million fund while understanding local businesses' unique challenges and potential.

• Smaller loans (£25,000 to £100,000): GC Business Finance and River Capital handle these loans.
• Larger loans (£100,000 to £2 million): Delivered by FW Capital and other appointed firms.
• Equity investment (up to £5 million): Managed by Praetura Ventures and equity specialists.

Managers work with entrepreneurs to tailor funding to growth plans.

The Impact on Regional Businesses

Claro Hill Vets, Harrogate

Claro Hill Vets received a £90,000 loan to manage overheads during construction delays. The business generated £550,000 revenue in its first year and expanded rapidly.

The Padel Club, Cheshire

The Padel Club secured a £1.5 million grant to construct an 11-court complex in Trafford City. With 90% occupancy and national expansion plans, it demonstrates NPIF II’s transformational power.

Broader Economic Implications

• Enhances investor confidence by mitigating risks in early-stage ventures.
• Drives innovation in green tech, robotics, and digital solutions.
• Supports net-zero goals through ESG-aligned investments.
• Forges regional partnerships and builds business ecosystems.

Examples include Scrubmarine in Cumbria and Finlegal in Sheffield, the first NPIF II recipient in Yorkshire.

Fostering Long-Term Growth

• Removes capital barriers to create equal financial access.
• Develops innovative businesses with future-ready visions.
• Enhances talent development and workforce sustainability.
• Expands outreach via roadshows in towns and cities like Chester, York, and Newcastle.

Why NPIF II Matters

NPIF II acts as a strategic support network for SMEs, offering more than funding. It is transforming Northern England’s economy by empowering local businesses and reducing inequality.