Businesses across Yorkshire and the Humber, and Tees Valley are set to benefit from an additional £5m of funding from NPIF - BEF & FFE Microfinance, which is part of the Northern Powerhouse Investment Fund (“NPIF”).
Responsible finance providers Finance For Enterprise (“FFE”) & Business Enterprise Fund (“BEF”) were appointed in 2017 to manage NPIF – BEF & FFE Microfinance and have already invested more than £9.5m into 210 businesses within the region.
This new allocation will increase the fund size from £10m to £15m and enable the two lenders to continue their support to start-ups, early-stage and more established businesses that are looking to grow.
Microfinance loans range between £25,000 and £100,000 and are designed to provide businesses with funding that can be used for a wide range of purposes. This includes filling gaps in working capital, funding expansion projects, investing in new equipment, leasing commercial premises, hiring new staff and more.
Steve Waud, CEO of BEF said: “Adapting is a major part of recovery and growth and RKB - and their customers - exemplify this. We were delighted to support them as they grow and look forward to funding many other small companies across Yorkshire and the Humber, and Tees Valley.”
Andrew Austwick, Managing Director of FFE said: “This additional investment from the Northern Powerhouse Investment Fund will help more businesses across Yorkshire and the Humber, and Tees Valley to access the vital funds needed to realise their potential. When businesses prosper, the whole of society benefits. NPIF plays a critical role in helping to create and retain skilled jobs within the regional economy, as well as assisting businesses to secure the funds needed to invest, innovate and adapt to a challenging economic climate.”
Grant Peggie at the British Business Bank, said: “Providing Microfinance loans of £25,000 to £100,000 has played an important part in the success of the Northern Powerhouse Investment Fund. They have provided vital capital to small businesses to support their growth particularly as we come out of the Pandemic.. We congratulate Finance For Enterprise and Business Enterprise Fund on securing this additional funding, and look forward to seeing its impact as it support more small growing businesses across Yorkshire and the Humber, and the Tees Valley.”
The Northern Powerhouse Investment Fund project (NPIF) is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
About The Northern Powerhouse Investment Fund
• The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
• The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity,
• The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
• The NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Hull and East Yorkshire, Leeds City Region, South Yorkshire Mayoral Combined Authority, York & North Yorkshire
• The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Levelling Up, Housing and Communities is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit www.gov.uk/european-growth-funding.
• The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.
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