Extra £5m worth of funds on offer to help businesses thrive
Businesses across Yorkshire and Tees Valley will benefit from an additional £5m of funding from NPIF – BEF & FFE Microfinance, which is part of the Northern Powerhouse Investment Fund (NPIF).
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.
Commercial lighting design specialist RKB Electrical is an example of a business that recently secured investment.
Based in Skipton, it was awarded a £25,000 loan from NPIF – BEF & FFE Microfinance, backed by RLS, and was also provided an additional £80,000 directly from BEF to expand its product offering.
Chris Rickerby, operations manager at RKB Electrical, said: “Businesses all over the UK are looking to make their offices healthier to welcome their employees back to a central hub where possible.
“We have been inundated with queries about how lighting can help make offices brighter, healthier and more sustainable as part of commercial refits.
“We’re using the funding to deliver a wider range of bespoke lighting products that can deliver on this and looking at developing our own products.”
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.
“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 added: “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.”
