A £660 million investment fund to support the growth of small and medium-sized businesses across the North of England is on course to be launched early in 2024.

This will include Stockport, the rest of Greater Manchester, and other locations all across the North of England.  

The fund - named 'Northern Powerhouse Investment Fund II' - has been launched by the British Business Bank to drive sustainable economic growth.

British Business Bank plc is an economic development bank established by the government and owned by the state, aiming to increase the supply of credit to small and medium enterprises.

A statement on the bank's website says: "Our aim is to drive sustainable growth and prosperity across the UK, and to enable the transition to a net zero economy, by supporting access to finance for smaller businesses."

This new £660 million fund will "offer a range of commercial finance options with loans from £25,000 to £2 million and equity investment up to £5 million", according to a statement. 

"The fund will address an identified funding gap in the North of England and increase the supply and diversity of early-stage finance for smaller businesses."

The Nations and Regions Investment Fund aims to increase the supply and diversity of early-stage finance for UK smaller businesses, providing finance to firms that might otherwise not receive investment and help to break down barriers in access to finance. 

Ken Cooper, managing director, Venture Solutions, at the British Business Bank, hopes the fund will increase the supply and diversity of early-stage finance for smaller businesses (Image - British Business Bank)

Ken Cooper, managing director, Venture Solutions, at the British Business Bank, said: "The launch of the Northern Powerhouse Investment Fund II builds on the success of its predecessor.

"It will further increase the supply and diversity of early-stage finance for smaller businesses in the region, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance. 

"The first Northern Powerhouse Investment Fund has facilitated the investment of more than £1 billion into northern businesses since it launched, and has been instrumental in the creation of thousands of new jobs and opportunities. 

"We know that the levels of private debt lending and equity investment in the North of England remain below expectations given the region's share of the UK's smaller business population and that is something this next generation of the fund will continue to address by backing ambitious businesses that will drive sustainable economic growth."

The British Business Bank is now inviting proposals from potential fund managers to operate the Northern Powerhouse Investment Fund II via its website.

It expects to appoint fund managers and launch the fund in early 2024.

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