Loans from £25k to £2m,debt finance from £100k to £2m, and equity investment up to £5m will be available to companies across the North West, Yorkshire and the Humber, Tees Valley, and the North East.

The fund aims to build on the previous fund launched in 2017, which has provided over £1bn of direct and private sector co-investment, according to the British Business Bank.

The purpose of these funds is to drive sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses across the North of England.

Nine fund managers have been appointed to administer the investment fund:

In the North West, GC Business Finance & River Capital will manage the smaller loans (£25,000 to £100,000), FW Capital larger loans (£100,000 to £2m) and Praetura Ventures equity deals (up to £5m). In Yorkshire and the Humber, Mercia will deliver debt finance (£100,000 to £2m) and equity finance (up to £5m) to smaller businesses. Business Enterprise Fund delivering smaller loans (£25,000 and £100,000). In the North East, NEL Fund Managers will provide both smaller loans (£25,000 to £100,000) and debt finance (£100,000 to £2m). Maven Capital Partners will manage equity deals (up to £5m).

Louis Taylor, chief executive of the British Business Bank, said: “The success of the first Northern Powerhouse Investment Fund has proven the instrumental change that access to finance can have for small businesses. From creating hundreds of jobs to developing ground-breaking products, we have seen companies that previously lacked funding options accelerate forward in their growth journeys, which has ultimately benefitted the whole of the Northern economy.

“This is why it was important to continue the Northern Powerhouse Investment Fund into its next phase. With further funding available, and a greater geographical reach in the North East, the Northern Powerhouse Investment Fund II will engage more stakeholders across the regions, bringing the business community closer together to create more opportunities for entrepreneurs everywhere.”

Kevin Hollinrake MP, Minister of State for Enterprise, Markets, and Small Business, said: “This new fund will unlock millions in equity and loans for SMEs across the North to realise their full potential and builds upon British Business Bank’s vital work ensuring that any small business owner in the UK can scale up and grow.

“SMEs are the engines of growth for our economy and across government we are improving access to finance, cutting red tape and removing barriers to ensure that they can go further and faster than ever before.”