Northern Powerhouse Investment Fund II (NPIF II)

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The Northern Powerhouse Investment Fund II will build on the success of the first Northern Powerhouse Investment Fund and will deliver a £660 million commitment of new funding to smaller businesses. The fund aims to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England.

The Northern Powerhouse Investment Fund II offers a range of commercial finance options with smaller loans and debt finance from £25,000 to £2 million and equity investment up to £5 million. The fund covers the whole of the North, including rural, coastal and urban areas, and will increase the supply and diversity of early-stage finance for smaller businesses across the North of England, providing funds to businesses that might otherwise not receive investment and helping to break down barriers in access to finance.

The fund offers three different commercial finance options designed to tackle identified funding gaps across the North of England:

Smaller Loans

• Loans of between £25,000 and £100,000
• For new or growing businesses
• By fund manager Business Enterprise Fund - BEF | Business loans up to £250,000 (befund.org)

Debt Finance 

• Loans of between £100,000 and £2 million
• For businesses that can demonstrate growth potential
• By fund manager Mercia Asset Finance - Northern Powerhouse Investment Fund II - NPIF (mercia.co.uk)

Equity Finance 

• Equity investment finance of up to £2 million
• Early stage equity funding
• For businesses with ambitious growth plans
• By fund manager Mercia Ventures - Northern Powerhouse Investment Fund II - NPIF II Equity Finance (mercia.co.uk)

The NPIF II funding options can support businesses with a range of business development projects, including:

• Funding expansion projects    
• Leasing new commercial premises    
• Making asset acquisitions
• Hiring a new team
• Purchasing new machinery or equipment
• Launching a new product or service

Eligibility Information 

Businesses based within the Northern Powerhouse area may be able to apply, subject to specific eligibility criteria set by the fund managers. From start-ups to those with expansion and growth plans, if a business can demonstrate growth potential, it may be eligible to apply.