About this programme
Northern Powerhouse Investment Fund II (NPIF II) is a £660 million fund run by the British Business Bank to back small and medium-sized businesses across the North of England, launched on 21 March 2024. It's one of six Nations and Regions Investment Funds the Bank has rolled out (alongside funds for Wales, Northern Ireland, Scotland, the Midlands and the South West), each targeting a specific part of the UK where smaller businesses have historically struggled to raise institutional debt and equity finance.
NPIF II covers the whole of the North of England, spanning rural, coastal and urban areas. It offers three separate finance products rather than a single instrument: Smaller Loans from £25,000 to £100,000, Debt Finance from £100,000 to £2 million, and Equity Finance up to £5 million. This record covers the equity finance route specifically.
The fund is delivered on the ground by a panel of regional fund managers appointed by the British Business Bank rather than by the Bank directly. For equity, three fund managers each provide equity deals up to £5 million in their own patch: Praetura Ventures for the North West, Mercia for Yorkshire & the Humber, and Maven for the North East. A business applies to whichever fund manager covers its region, not to the British Business Bank itself.
Equity finance under NPIF II is aimed at start-ups and established businesses with high growth ambitions that are headquartered in, or have a significant operating presence in, the North of England. Investments can be made alone or alongside other debt or equity capital already in a deal.
How it works
NPIF II is structured as three separate finance products — Smaller Loans (£25k–£100k), Debt Finance (£100k–£2m) and Equity Finance (up to £5m) — administered by different appointed fund managers rather than a single central desk.
For equity, a business deals directly with the regional fund manager covering its area (Praetura Ventures for the North West, Mercia for Yorkshire & the Humber, or Maven for the North East) rather than with the British Business Bank.
The fund can invest alone or co-invest alongside other private-sector debt or equity providers already backing the deal, per NPIF II's own FAQ: its product funds can invest alone or alongside other sources of debt or equity capital where appropriate, and fund managers are encouraged to leverage in additional private capital.
Who can apply
NPIF II uses an inclusive eligibility approach but some criteria do apply, and fund managers advise on suitability case by case, per the programme's published FAQ.
Businesses must be headquartered in the North of England, or have a significant operating presence there, to qualify — the fund covers the whole of the North, including rural, coastal and urban areas.
For equity specifically, the fund targets start-ups and established businesses with growth ambitions and high growth potential, rather than early pre-revenue concepts with no trading history.
Having previously received a Bounce Back Loan (BBLS) or Coronavirus Business Interruption Loan (CBILS) does not disqualify a business from applying to NPIF II.
How to apply
- Identify the fund manager responsible for equity investment in your region (Praetura Ventures for the North West, Mercia for Yorkshire & the Humber, or Maven for the North East).
- Contact that fund manager directly to discuss your business and funding need — applications go straight to the relevant regional fund manager rather than to the British Business Bank centrally.
- The fund manager assesses eligibility and fit against NPIF II's criteria and advises on which of the fund's products (equity, debt finance, or smaller loans) suits the business.
- Full application, due diligence and terms are negotiated directly with the appointed fund manager, since NPIF II funds are deployed through them rather than through a single centralised process.
Frequently asked
Who runs Northern Powerhouse Investment Fund II?
The British Business Bank set up NPIF II, but it is delivered through a panel of appointed regional fund managers — including Praetura Ventures, Mercia and Maven for equity — who each handle applications and deals for their part of the North of England.
How much equity can a business raise through NPIF II?
NPIF II's equity finance product goes up to £5 million per deal. The fund also offers separate debt products — Smaller Loans of £25,000 to £100,000 and Debt Finance of £100,000 to £2 million — for businesses that want debt rather than equity.
Which businesses are eligible for NPIF II equity finance?
Businesses headquartered in, or with a significant operating presence in, the North of England, that are start-ups or established businesses with high growth ambitions. NPIF II applies an inclusive approach but some eligibility criteria do apply, and fund managers assess suitability case by case.
Does having a Bounce Back Loan or CBILS loan rule a business out?
No. The official FAQ confirms a business can still apply for NPIF II funding if it previously received a Bounce Back Loan Scheme (BBLS) or Coronavirus Business Interruption Loan Scheme (CBILS) loan.
Do you apply to the British Business Bank directly?
No. Equity applications go directly to the relevant regional fund manager covering your area, not to the British Business Bank centrally — the Bank sets up and funds the programme but does not run individual deals.
Can NPIF II equity be combined with other investors in the same round?
Yes. NPIF II's product funds can invest alone or alongside other sources of debt or equity capital where appropriate, so it can sit within a larger round with private co-investors.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.