August 4, 2020 @ 16:56 by Alison Cowie
In just six weeks, FW Capital has invested over £7.5 million in Northern businesses through Northern Powerhouse Investment Fund (NPIF) loans backed by the Coronavirus Business Interruption Loan Scheme (CBILS).
FW Capital has provided loans between £100k and £750k to SMEs that are experiencing lost or deferred revenues, leading to disruptions to their cash flow backed.
Since FW Capital launched its NPIF – FW Capital Debt Finance loans, backed by CBILS, the funding has helped 24 businesses through two funds across the North of England with a focus on Tees Valley, Cumbria and the North West.
The loans have gone to SMEs in a variety of sectors, including engineering, manufacturing, construction, health and education.
Joanne Whitfield, FW Capital’s fund director for Tees Valley, said: “COVID-19 presented significant challenges on an unprecedented scale for many businesses so we did everything in our power to get the funding out as quickly as possible. Investing over £1 million on average per week, is testament to the team’s dedication to ensuring SMEs can access the funding they need to support their recovery from the pandemic.
“FW Capital is a long-term growth partner with teams across the region ready to offer practical support to both new and existing customers. Now as we begin to return to our new normal, we will continue to support them in this way, ensuring that together we safeguard jobs and protect our economy.”
One business that benefited from an NPIF loan backed by CBILS is Middlesbrough-based audio-visual equipment supplier IOTA Enterprises Limited, which received £250,000.
Funding has meant IOTA will be able to fulfil a £750,000 contract, as well as complete the development and launch of its planned new products. It has also helped created four new jobs and safeguard a further job.
Ian Vermeulen, IOTA Enterprises Managing Director, said: “We are very grateful to the team at FW Capital for their support at this challenging time and look forward to further liaising with them as we move towards recovery.”
Grant Peggie at British Business Bank, added: “FW Capital has been key in the delivery of NPIF loans backed by CBILS, helping us to provide vital support to businesses across a number of sectors following the pandemic. To deliver £7.5m in CBILS loans over a period of just six weeks is a fantastic achievement and it’s great to see Northern businesses receiving support from NPIF-backed CBILS loans have already proven a valuable tool in addressing regional disparities particularly during COVID-19.”
Operating from the British Business Bank’s Sheffield head office, the Northern Powerhouse Investment Fund provides a mix of debt and equity funding (£25,000 to £2m). It works alongside ten Local Enterprise Partnerships (LEPs), the combined authorities and Growth Hubs, as well as local accountants, fund managers and banks, to support Northern-based SMEs at all stages of their development.
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.
Delivered by the British Business Bank, via NPIF – FW Capital Debt Finance, CBILS will support the continued provision of finance to UK smaller businesses during the COVID-19 outbreak.
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS).