British Business Bank (BBB), the UK government’s economic development bank, has launched the second edition of its Northern Powerhouse Investment Fund (NPIF II), aimed at fostering the growth of small and medium-sized enterprises (SMEs) across the North of England.

British Business Bank launches second edition of its NPIF

The firm says the £660 million fund “will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2 million and equity investment up to £5 million”.

BBB has the goal of enhancing financial inclusion through the provision of early-stage finance to businesses in the UK.

The upcoming iteration of the NPIF will broaden the fund’s scope to encompass the entire North East region. Previously, the initial NPIF, launched in 2017, targeted companies in the North West, Tees Valley, Yorkshire, and the Humber.

BBB claims that “over £1bn of direct and private sector co-investment has been facilitated to businesses” since the launch of the first fund.

Nine fund managers have been selected to oversee NPIF II, with Glasgow-based Maven Capital Partners entrusted with managing equity deals of up to £5 million.

Speaking on the impact of the new fund, Kevin Hollinrake MP, UK minister of state for enterprise, markets, and small business, says NPIF II 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”.