How NPIF II is driving change

Sarah Newbould

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The Northern Powerhouse Investment Fund II (NPIF II) continues to play a key role in driving economic growth, innovation, and sustainability amongst smaller businesses in the North. It’s creating long-term change, supporting businesses to grow and thrive, and addressing regional investment disparities. With the British Business Bank recently celebrating its 10-year anniversary, NPIF II is playing a key part in strengthening the small business economy to create a more sustainable future in the region, and helping businesses grow through the next ten years.

While the immediate impact of NPIF II can be directly measured in the businesses receiving funding, its longer-term benefits are also highly valuable. The Fund’s focus on supporting smaller businesses, encouraging sustainable growth, and tackling disparities is crucial for addressing historical levels of lower investment into the Northern economy.

Addressing regional disparities🔗

Businesses in the North East, which have often received lower levels of investment, are using NPIF II funding to scale and grow. Lithium Salvage, based in Wolsingham, Durham, secured funding from NPIF II – Maven Equity Finance which supported its development of a proprietary process for recycling waste lithium-ion battery materials. The funding will enable the company to invest in the scale up of the production process and support the expansion of its Sunderland site, in turn attracting further investment to the region. With investment from NPIF II, Lithium Salvage was able to overcome the funding challenges faced by businesses in harder-to-reach regions.

Supporting smaller businesses and innovation🔗

Smaller businesses often face barriers to accessing the finance that is imperative to their growth. NPIF II not only works with businesses to make the changes they need to grow but it also ensures that organisations and regions continue to cement their status as leaders in innovation. In the North West, innovative businesses have used the Fund to help them scale. One such business is CareLoop, a spinout of the University of Manchester, and a digital therapeutic platform for mental health issues. CareLoop will scale and deploy its novel technology across the NHS and to other global health institutions. Across in Yorkshire and the Humber Wild Intervention, a youth outdoor education provider, also secured funding from NPIF II to support its growth. Following a career in the navy, founder Caine Williams founded the business in 2020. Last year, he received funding from NPIF II – BEF Smaller Loans to support the development of an app that will support Wild Intervention’s service users.

Backing sustainable growth🔗

The transition to a green economy is a key focus for the Fund, and NPIF II is investing in businesses that are leading the way. Blyth-based LBM Group, an electrical contracting firm, is one of a small number of local companies which is OZEV-approved and MCS accredited, meaning it can meet the increasing demand for electric vehicle chargers and solar PV installations in both existing and new build commercial and domestic buildings. It secured a five-figure loan from NPIF II – NEL Smaller Loans to support its team expansion, and to purchase new assets which will bolster its continued growth. With NPIF II’s backing, LBM Group is helping the North meet its net-zero targets and positioning the region as a leader in green technology.

Creating jobs and boosting local economies🔗

Job creation and retention are both vital for regional growth, and Alderley Park-based Airship Interactive is a great example of how NPIF II is helping to drive this goal. Airship Interactive has used funding from NPIF II – FW Capital Debt Finance to expand from its previous HQ in Lytham St. Annes to a new, larger site at Alderley Park. The move accommodates the firm’s rapid growth and supports its contribution to the North West’s growing reputation as a tech and creative hub. Airship Interactive’s success demonstrates how targeted investment from NPIF II can support job creation and boost local economies.

Transforming the future of the North🔗

NPIF II is not just an investment fund, but also a powerful tool for change. By supporting smaller businesses like those mentioned above, fostering innovation, promoting sustainable growth, and addressing regional disparities, the Fund is paving the way for a more prosperous Northern economy.

If you’re a business based in the North and looking to grow, look to find out which of our funding options is best for you – smaller loans, debt or equity please get in touch here.