Northern Powerhouse Investment Fund II

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On 21 March 2024, the British Business Bank announced the launch of a £660 million fund to invest in businesses in the North of England known as the "Northern Powerhouse Investment Fund II" (see the British Business Bank's press release Launch of the Northern Powerhouse Investment Fund II provides £660m boost for small businesses of 21 March 2024).  Funds will be available for  "smaller loans" (£25,000 to £100,000), debt finance (£100,000 to £2 million) and equity finance up to £5 million.

Eligible Areas
Businesses in Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, City of Kingston upon Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside, Sunderland can apply for this funding.  For businesses outside those areas, there are similar investment funds in the Midlands and South West England, Scotland, Wales and Northern Ireland (see the British Business Bank's Nations and Regions Investment Funds page).

Smaller Loans
Smaller loans are available for start-ups and established small businesses seeking to grow that find it difficult to obtain facilities from clearing banks.  These are distributed through GC Business Finance in Manchester and Cheshire, River Capital in Liverpool and Lancashire, Business Enterprise Fund in Yorkshire and the Humber and NEL in the Northeast.  Applicants should approach the local fund manager for further information about availability and the procedure for making an application.

Debt Finance
This option may be appropriate for leasing premises, management and specialist recruitment, acquiring equipment and developing and launching new products.  Funding is distributed by FW Capital in the Northwest, Mercia Asset Management in Yorkshire and the Humber and NEL in the Northeast.  Further information is available from those companies.

Equity Investment
This takes the form of a contribution to the capital of a company in return for shares.   It represents a long-term commitment to a business.  Investors will be looking for fast growth potential and strong management.  As they will be taking a stake in the business they will be entitled to a say in how the business is run and sometimes who should direct it.   Praetura Ventures should be approached for investment in business in the Northwest, Mercia Ventures in Yorkshire and the Humber and Maven in the Northeast.

Intellectual Property
Lenders and equity investors will expect the businesses they support to obtain adequate legal protection for their brands, product designs, inventions, software, data and business information and know-how,  They will also expect those businesses to have incorporated the costs of prosecuting patent, trade mark and registered design applications and enforcing their rights and into their business plans (see Writing IP Into Your Business Plan 9 June 2023 NIPC Invention).  Plans for exploiting their intellectual assets through business format franchising, licensing or distribution agreements should be set out too.   

Intellectual property counsel such as I can help in many ways from advice on the optimum legal protection, drafting licence, joint venture or other agreements or representation in the courts or Intellectual Property Office.   For startups and other small businesses, I offer a free "Initial Advice and Signposting Service".  If it appears that you need the services of some other professional such as a patent or trade mark attorney, specialist solicitor, product design consultant or IP tax accountant I can help you identify one. (see IP Services from Barristers  6 April 2013 NIPC News).   You can approach us through a patent or trade mark attorney or solicitor or in many cases directly.

Roadshows
Together with many other professionals, I have been invited to one of the British Business Bank's roadshows in Daresbury, Manchester and AMRC in the Northwest and Hull, Sheffield and Newcastle in the Northeast to celebrate the launch of the fund.  According to the invitation:

"These events are aimed at business advisors, accountants, bankers, lawyers, the wider small business support ecosystem and public sector representatives interested in hearing about the new Northern Powerhouse Investment Fund II."

If any of my readers want to attend, they will find links at the bottom of the Northern Powerhouse Investment Fund page of the British Business Bank's website.   Anyone wishing to discuss this article may call me on 020 7404 5252 or send me a message through my contact page.

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