Investment fund passes £20m lending milestone
The Northern Powerhouse Investment Fund (NPIF), delivered by British Business Bank, has made 66 investments in a total of 47 York, North Yorkshire & East Riding based small businesses.
It means funding from NPIF has now exceeded £23m in the region.
NPIF has been investing since February 2017, delivering equity finance, debt finance, and microfinance solutions ranging in size from £25,000 to £2m to businesses.
It works closely with the York & North Yorkshire Local Enterprise Partnership and Growth Hub. The total of £23m includes £16.2m directly from NPIF, along with a further £7.7m from private investors.
Recent investments include York-based Country Products, a wholesale supplier of healthy snacks such as dried fruit and nuts.
The company received a £100,000 loan from NPIF – Mercia Debt Finance, which is managed by Mercia, to give it the growth capital required to purchase additional stock and take on more staff. The company also has ambitions to develop its own range of products.
Another recent investment includes Northallerton-based GI Medical, which received £650,000.
The company, which specialises in gastroenterology products, offers NHS and private healthcare providers the latest innovative technologies to improve patient care and reduce costs.
The funding has allowed it to develop its global supply partnerships, expand its sales and marketing strategy and recruit new staff.
NPIF is also actively supporting businesses which have been hit by the Coronavirus outbreak, providing loans backed by the CBILS scheme.
NPIF – BEF & FFE Microfinance, managed by BEF and Finance for Enterprise recently provided a £50,000 NPIF CBILS-backed loan to Yorkshire Dales Building Consultancy Ltd.
The business is a Leyburn-based corporate approved inspector which carries out building control duties on construction projects.
It suffered a slowdown after the Coronavirus damaged the UK’s construction sector, and the loan, provided by BEF has helped the business throughout the lockdown period.
David Dickson, chairman of the Infrastructure and Joint Assets Board of York & North Yorkshire Local Enterprise Partnership, said: “This is a fantastic milestone for NPIF funding in York and North Yorkshire.
“This level of investment has unlocked economic growth, created new jobs and encouraged private sector follow on investment.”
Grant Peggie, director at British Business Bank, said: “We have been impressed with the hard work shown by the NPIF Fund Managers over the last three years, which has resulted in £23m worth of investment being provided to York, North Yorkshire and East Riding’s growing businesses.
“We expect that, due to the current economic climate, appetite for external finance will remain high as businesses seek support during the outbreak and beyond.”
