Borrowers taking out business loans from the Northern Powerhouse Investment Fund (NPIF) can now do so on even better terms after Mercia was accredited for the latest phase of a government scheme.
It means that Mercia can now provide NPIF loans backed by the third phase of the Recovery Loan Scheme (RLS), which was launched in August to support access to finance for small businesses and improve the terms on offer to them.
Applications for NPIF loans backed by RLS have already opened. The loans offer sums of £100,000 to £750,000 to companies or LLPs in the North of England with fewer than 250 staff. Businesses that took out a loan before 30 June 2022 under similar schemes such as the previous Recovery Loan Scheme (RLS), Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) or Bounce Back Loan Scheme (BBLS) can still apply although in some cases it may reduce the amount they can borrow.
Mercia now manages around £190m on behalf of the Northern Powerhouse Investment Fund (NPIF), deploying both debt and equity across the region with a particular focus on Yorkshire and the Humber for debt finance and also the Tees Valley area for equity finance.
Paul Taberner (pictured), Managing Director of Mercia’s Debt Funds, said: “Businesses have faced a series of challenges in recent years, first with the pandemic and now the war in Ukraine and rising energy prices. Therefore it is particularly important that we maintain access to finance for SMEs. As many small firms find it difficult to access traditional bank loans, we are delighted to be working with our partners at both the British Business Bank and the Northern Powerhouse Investment Fund to deliver the RLS scheme in the region and help to fuel their growth.”
Sean Hutchinson, Senior Manager at British Business Bank said: “We know the value that access to finance can have on the growth trajectory for small businesses in the North of England. We’re pleased to be working with Mercia to provide crucial funding options that will enable companies to recover from what has been a challenging few years. A healthy and thriving Northern business community is crucial to the overall UK economy, and this can only happen if the right financial support is in place for companies to use and grow.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.