NPIF II Smaller Loans fund lends £1.83m to 33 North West firms in 2025/26

The Smaller Loans fund operated by GC Business Finance and River Capital under the Northern Powerhouse Investment Fund II (NPIF II) lent £1.83m during the 2025/26 financial year.

The consortium supported 33 businesses over the year and says it still has a strong pipeline of applications from founders looking for growth capital. As fund managers, GCBF and River Capital provide NPIF II loans of up to £100k to firms in the North West, helping businesses to start, scale and invest in their future.

Female-founded businesses received 27% of all loans in the year. The consortium said this reflected its commitment to entrepreneurs who have historically struggled to access finance.

Money went to firms in Greater Manchester, Merseyside, Cheshire, Lancashire and Cumbria. The consortium said the spread showed how much innovation the region holds and the role the fund has in local economies.

NPIF II does not focus on particular sectors, which allows the consortium to back businesses in a wide range of industries. This year's recipients included Hussel, a Manchester marketing agency, which used its funding to launch the “Mobile Disruption Unit”, a specialist vehicle built for brand activations, live events and experiential work.

PlayXD, a Lancashire game studio that also develops game-tech software, received £100k to support its growth as it develops its latest title in partnership with Meta.

Andy Nichols, investment manager at GC Business Finance, said: “It’s been another strong year for NPIF II, with the team injecting over £1.8m into ambitious entrepreneurs across the North West. We remain committed to supporting underrepresented founders and those in harder‑to‑reach areas, helping businesses access the funding they need to grow, particularly as they navigate wider economic pressures.”

“With a healthy pipeline ahead, we’re looking forward to backing even more businesses in the coming year.”

The £660m NPIF II covers the whole of the North of England. It offers loans from £25k to £2m and equity investment of up to £5m to help small and medium-sized businesses start up, scale up or stay ahead.

The fund aims to drive sustainable economic growth by backing innovation and creating local opportunity for new and growing firms in the North. It is intended to increase the supply and range of early-stage finance for smaller businesses, including those that might otherwise not receive investment.