The Northern Powerhouse Investment Fund (NPIF), delivered by British Business Bank, has facilitated over £21m of investment across more than 54 transactions in the Humber region.
NPIF which has been investing since 2017, delivering equity finance, debt finance, and microfinance solutions ranging in size from £25,000 to £2m to businesses in the region is working closely with the Humber Local Enterprise Partnership and Growth Hub.
The total £21m invested includes £8m directly from the Fund itself, along with a further £13m leveraged from the private sector. Recent investments include LiveLead, which has received £300,000 from NPIF – Mercia Equity Finance. LiveLead has developed an online lead generation system to help SMEs access new business opportunities. The company is using the capital to support the marketing spend as the product is rolled out across the country.
Other investments include Hull based BEE Interiors, a national provider of ceilings and partitions services, which recently secured a £200,000 loan from NPIF – Mercia Debt Finance. Established in 2016, BEE Interiors has grown to a £2m turnover business and it is now targeting revenues of £2.5m this financial year.
The funding has allowed the company to move into a larger office space, and increase staff numbers from three to ten. It has performed particularly well despite the UK’s lockdown measures, having enjoyed its best ever month in May. It has also recently acquired an established painting and decorating business, further expanding its overall offering to clients.
NPIF is also able to support smaller businesses with loans ranging in size from £25,000 up to £100,000 through NPIF – BEF & FFE Microfinance. The fund recently provided a £25,000 to Motrans, a Grimsby-based haulage company headed up by Dean Morris. The loan, which was provided by Finance For Enterprise, has helped Dean grow his fleet of vehicles, purchase a vehicle transporter and renovate the premises in order to allow his business to grow.
Stephen Parnaby OBE, chair of the Humber LEP, said: “It is fantastic to see that NPIF is helping to unlock the potential of growing Humber businesses by providing vital finance to support their ambitions and growth. SMEs make up 98 per cent of the Humber economy, so it’s great to see the region’s ambitious enterprises able to realise their potential through this much-needed financial backing.”
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 over £21m worth of investment being provided to Humber’s most ambitious 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. Alongside our Fund Managers, we will look to maintain this momentum and continue to provide vital investment to the North’s businesses.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.