New data published today shows that businesses across the North West have received a total of over £4.4bn in funding under the government’s two largest Covid-19 loan schemes, the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme. These provide financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the Covid-19 outbreak:

• over 112,000 loans worth over £3.3bn have been offered across the North West under the Bounce Bank Loans Scheme, which provides a six-year term loan from £2,000 up to 25% of a business’ turnover, with a limit of £50,000.
• Alamost 4,700 loans worth over £1.1bn have been offered across the North West under the Coronavirus Business Interruption Loan Scheme, which provides Business loans, overdrafts, invoice finance & asset finance of up to £5m to businesses with a turnover less than £45m.

Total funding provided to North West businesses represents 11% of the national total, in line with the relative size of the North West’s business population (10%).

Keith Morgan, Chief Executive Officer of the British Business Bank, said:
“A key objective for the British Business Bank is to identify and help reduce regional imbalances in access to finance for smaller businesses across the UK. It is welcome to see in the data that these schemes are helping businesses in the North West to access the finance they need to survive and stabilise, putting them in a better position to grow as we move into recovery.”

Businesses across the country, from a wide range of sectors, have benefited from the schemes. Those featuring on the British Business Bank website include a Cambridgeshire-based cooking technology manufacturer, a Gateshead-based health solutions company and a Cornish removals company. Others include a Llandudno-based hotel, a Worksop-based plastering company and a County Down-based distributor of table sauces to food premises.

Small Business Minister Paul Scully said:“Throughout this crisis, we have backed business of all sizes in the North West, and in every corner of the UK. The schemes put in place by the government-owned British Business Bank have provided some much-needed breathing space for businesses as they deal with the challenges posed by coronavirus.

“Government support has helped firms right across the North West, not just in keeping businesses going but now enabling thousands to bounce back in a safe, Covid-secure manner.”

In just six weeks FW Capital has invested over £7.5m in Northern businesses through NPIF loans backed by CBILS from NPIF – FW Capital Debt Finance, which is part of the Northern Powerhouse Investment Fund.

FW Capital provides loans between £100k and £750k to SMEs that are experiencing lost or deferred revenues, leading to disruptions to their cash flow backed by the Coronavirus Business Interruption Loan Scheme (CBILS) . Both new and existing customers are eligible to apply.

Since FW Capital launched their NPIF loans backed by CBILS the funding has helped 24 businesses through two funds across the North of England, with a focus on the North West, Cumbria and Tees Valley. Businesses have received the money into their accounts in as soon as 9 working days from the application date, with the average being just 17 days.

The loans went to SMEs in a variety of sectors, including engineering, manufacturing, construction, health and education.

Since 2010, FW Capital has invested more than £154m into businesses and created or safeguarded more than 7300 jobs. It has expanded to a team of over thirty in offices across the North.

Gary Guest, FW Capital’s Fund Director in the North West, said: “FW Capital has provided a crucial and swift lifeline to SMEs across the region through our NPIF loans which are backed by CBILS

“It is heartening to have already reached the £7.5m milestone in just six weeks. We look forward to continuing to support SMEs by helping them access the finance they need during these challenging times.”

One business that recently benefitted from an NPIF loan backed by CBILS is Stockport Village Nursery, which received funding to enable the business to immediately make adaptations in-line with new social distancing rules.

The loan ensures that all the children can return to class sizes no larger than 16 as specified by the guidelines, in addition, it will provide working capital headroom in case there is a shortfall in child places due to more parents working from home.

Managing Director David Carroll said: “The safety of our staff and children is paramount. At full capacity we can accommodate up to 120 children, but we need to make adaptations so that we can reduce class sizes, giving comfort to parents.

“We approached the bank for a loan but found it difficult to get a response. We were fortunate a family member, Mike Berger, has worked with FW Capital before and he introduced us. He supported us with the financial model and other documents we needed to prepare.

“The entire investment process only took around three weeks. There was constant communication throughout the process and there was never any doubt that we would receive the money which really took the pressure off.”

Grant Peggie at British Business Bank, said: “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).