A FUND which provides debt finance to businesses in Yorkshire has lent more than £50million since its launch five years ago.
NPIF – Mercia Debt Finance has provided loans to almost 200 businesses, including several in York, and helped attract a further £31m in private sector co-investment.
A wide range of companies, from manufacturers to technology companies, have been backed by the fund, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF).
Companies that have received funding include whole foods supplier Country Products, dietary supplement specialist Power Body Nutrition and biomass supplier VerdEnergy, which are in and around York; and Harrogate Impulse Decisions, a charity auction specialist, and Judgeservice, which provides customer surveys.
NPIF – Mercia Debt Finance can provide loans ranging from £100,000 to £750,000.
It is accredited under the government’s Recovery Loan Scheme (RLS), which aims to support businesses in the post-pandemic period and improve conditions for SMEs looking to borrow, including higher interest rates lower than would otherwise be the case.
Paul Taberner, Managing Director, Debt at Mercia, said: “NPIF – Mercia Debt Finance has played a key role in bridging the funding gap between the amount that banks and other lenders are able to provide to a company and the amount it needs for growth.
“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.
“While many lenders will assess a business solely on its business history, we are prepared to consider what it might achieve in the future, which is particularly important as businesses recover from 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 been transformational for businesses across Yorkshire and the Humber.
“Since its launch five years ago, companies have been able to thrive 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.