Bank launches £500m growth fund for SMEs in the North

Barclays has launched a new £500m fund for small and medium-sized businesses in the North of England as part of its commitment to support the Government’s Northern Powerhouse initiative.

The new fund is available from today to inject investment into businesses across the region – including Yorkshire and Humberside – with favourable terms for manufacturing, transport and logistics companies.

Jes Staley, Barclays group chief executive, said: “Barclays has been helping businesses across the North to succeed since the dawn of the Industrial Revolution, when we financed the world’s first steam locomotive passenger railway between Stockton and Darlington.

“Today, we face new economic challenges and opportunities posed by the digital revolution, the growth in competition from emerging markets, and of course, Brexit.

“The Northern Powerhouse is an initiative which, if delivered, would help the whole country to meet that challenge and take those economic opportunities. That is why I’m delighted to announce our £500 million Northern Powerhouse Growth Fund, enabling businesses across the North to invest in jobs and growth.

The bank will also shortly open a new Eagle Lab space in Sheffield, a dedicated co-working spaces for promising start-ups to grow and collaborate  Sheffield.

Small Business Minister Andrew Griffiths said: “Small businesses are the backbone of our economy, with over 1,000 being created every day across the country supporting nearly 3 million jobs and generating revenues of more than £200 billion in the North of England alone. Through our modern Industrial Strategy, we are building a Britain in which they will continue to thrive.”

Northern Powerhouse Partnership Vice-Chair and leading economist Lord Jim O’Neill said: “I have consistently said that for the Northern Powerhouse to be a success and deliver a more balanced economy for the whole of the UK requires the support and vision of the North’s leading businesses.

“There is real momentum growing in the Northern Powerhouse, and I hope the commitment Barclays and their CEO Jes Staley have demonstrated today will be matched by our political leaders in Whitehall so the Northern Powerhouse can truly fulfil its potential.”

Under the £500m Northern Powerhouse Growth Fund, Barclays will be able to offer a range of business lending services to support day-to-day cash flow, expansion and investment for growth, including:

• Up to £250,000 overdraft without the need for property security for transport and logistics, business services, wholesales and manufacturing companies1
• Term lending fee-free up to £25,000
• Up to £100,000 lending without the need for tangible security
• Cash flow funding to invest in acquisitions and organic business growth
• Lending and debt support, which can be combined with the Government’s Northern Powerhouse Investment Fund

The Barclays fund is intended for SMEs in the Northern Powerhouse region, including: established businesses with ambitious growth plans, start-ups with high growth potential, companies with early-stage equity funding and businesses focusing on innovation, R&D and technology.