The Northern Powerhouse Investment Fund (NPIF) has made an additional £5m available to businesses across Yorkshire and the Humber, and Tees Valley.
Providers Finance for Enterprise and Business Enterprise Fund - managers of the now £15m NPIF – BEF & FFE Microfinance fund - will continue to support start-ups, early-stage and more established businesses that are looking to grow.
Microfinance loans range between £25,000 and £100,000 and can be used for everything from plugging gaps in working capital to funding expansion projects and purchasing new equipment through to leasing premises and hiring people.
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Commercial lighting design specialist RKB Electrical is one of the 210 businesses the providers have already supported.
The Skipton-based firm benefited from 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.
“The process with Mark Iley at BEF was very straightforward and the funding, delivered in partnership with the Northern Powerhouse Investment Fund, means we are able to respond to demand, enabling businesses all over the UK to re-open with confidence, while growing our own operation.”
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.
"When businesses prosper, the whole of society benefits. 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, director at the British Business Bank, said: “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.
"We congratulate Finance For Enterprise and Business Enterprise Fund on securing this additional funding, and look forward to seeing its impact as it support more small growing businesses across Yorkshire and the Humber, and the Tees Valley.”
The Northern Powerhouse Investment Fund project (NPIF) 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.
