NPIF II smaller loans fund lends more than £1.3m to 22 North West firms

The smaller loans fund run by GC Business Finance and River Capital under NPIF II, the Northern Powerhouse Investment Fund II, provided more than £1.3m of finance during the first half of its financial year.

The money went to 22 businesses and is expected to help create 83 jobs as firms across the North West grow and invest.

The two firms run the North West smaller loans strand of NPIF II as a consortium, lending between £25k and £100,000 to help businesses start up, scale and invest.

In the six-month period, 45% of loans were made to female-founded businesses and 40% to minority founders. The consortium said this reflects its ongoing focus on entrepreneurs who have traditionally found it harder to raise finance.

Recipients spanned many sectors, which the consortium said reflects the region’s varied economy and the fund’s role in local, place-based growth.

GC Business Finance fund manager Andy Nichols said: “It’s encouraging to see continued demand for NPIF II, with more than £1.3m invested in ambitious smaller businesses across the North West over the last six months. The funding is helping entrepreneurs access the capital they need to grow, invest in their ideas and create jobs, while contributing to the wider regional economy.

“We remain committed to supporting underrepresented founders and ensuring businesses can access the finance they need to reach their potential and we look forward to building on this progress and supporting even more businesses in the months ahead.”

River Capital senior investment manager Sue Chambers said: “Smaller loans can make a big difference. For many of the founders we work with, a loan of up to £100,000 is what allows them to open a new site, take on staff or invest in the equipment they need to grow, and it’s fantastic to see more than £1.3m reaching businesses across the North West in just six months.”

She added: “For us, this is what place-based impact looks like: finance that stays close to home, backs local founders, creates local jobs and strengthens the communities those businesses are part of. With 45% of loans going to female founders and 40% to minority founders, we’re proud to be widening access to finance across the region, and we look forward to supporting many more ambitious businesses in the second half of the year.”

Kidz Pamper Bus was among the businesses backed in the period.