Lending for NPIF – Mercia Debt Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF), has topped £50m since its launch five years ago.
The fund has provided loans to almost 200 businesses in Yorkshire and the Humber and helped to attract a further £31m in private sector co-investment.
Among the companies to receive funding were Sheffield-based Tinsley Bridge Group, a supplier of truck suspension parts and industrial steel products; Rosehill Polymers of Sowerby Bridge, which manufactures rubber products including crash barriers, level crossings and signal islands; Wold Top Brewery in North Yorkshire; Adventoris, a Huddersfield software company; and Sheffield animation studio Red Star.
One of the first companies to benefit was STEPS, a rehabilitation center in Sheffield founded by sisters Toria Chan and Jules Leahy. The fund provided early stage investments to help the company develop and grow.
NPIF – Mercia Debt Finance can provide loans from £100,000 to £750,000 and is accredited under the government’s Recovery Loans Scheme (RLS), which aims to support businesses in the post-pandemic period and improve conditions for SMEs looking to borrow, including lower interest rates than would otherwise be the case.
Paul Taberner, Head of Direct Debt Management at Mercia, said: “NPIF – Mercia Debt Finance has played a key role in bridging the financing gap between the amount that banks and other lenders are able to. to provide a business with the amount it needs to grow.
“Over the past five years, the fund has supported large parts of the regional economy. He has helped companies undertake new projects, invest in equipment, develop new products, adapt to changing markets and meet the challenges of the pandemic.
Sean Hutchinson of the British Business Bank added: “The work that the Northern Powerhouse Investment Fund and Mercia have done over the past five years has transformed businesses in Yorkshire and the Humber. Since its launch five years ago, companies have been able to grow and achieve their goals, using investment to create jobs, launch new products and expand into new markets.
“I am excited about the future opportunities this fund will support and create, creating a stronger North.
The Northern Powerhouse Investment Fund project is financially supported by the European Union through funding from the European Regional Development Fund (ERDF) under the European Structural and Investment Funds Growth Program 2014-2020 and the European Bank of investment.