The British Business Bank has launched a £660 million fund set to support new and growing businesses in the North of England.

The state-owned bank said the Northern Powerhouse Investment Fund II will increase the supply of finance for smaller businesses; provide funds for firms that might not receive investment; and break down barriers in access to finance.

The fund will provide loans from £25,000 to £2 million and equity investment up to £5 million.

The bank launched the first Northern Powerhouse Investment fund in 2017. Since then, over £1 billion of direct and private sector investment has been allocated to businesses.

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

The chief executive went on to say that the new funding will help engage more stakeholders and create better opportunities for entrepreneurs.

---