A FUND which provides debt finance to Yorkshire firms has lent more than £50m since its launch five years ago.

NPIF – Mercia Debt Finance has provided loans to almost 200 businesses, including several in York, and helped to attract an additional £31m in private sector co-investment.

A diverse range of enterprises, from manufacturers to tech firms, have been supported by the fund, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF).

Companies which have received funding include wholefoods supplier Country Products, food supplements specialist Power Body Nutrition, and biomass supplier VerdEnergy, which are in and around York; and Harrogate firms Impulse Decisions, a charity auction specialist, and Judgeservice which provides customer surveys.

NPIF – Mercia Debt Finance can provide loans from £100,000 to £750,000.

It is accredited under the government’s Recovery Loans Scheme (RLS), which aims to support business in the post-pandemic period and improve the terms for SMEs looking to borrow, including lower rates of interest than would otherwise be the case.

Paul Taberner, managing directer, debt at Mercia, said: “NPIF – Mercia Debt Finance has played a key role in plugging the funding gap between the amount that banks and other funders are able to provide to a business and the amount that it requires for growth.

"Over the past five years the fund has supported broad swathes of the regional economy. It has helped businesses take on new projects, invest in equipment, develop new products, adapt to changing markets and navigate the challenges of the pandemic.

“Whereas many lenders will assess a company purely on its past trading record, we are prepared to consider what it could achieve in the future, which is particularly important as businesses recover from the pandemic."

Sean Hutchinson, of British Business Bank, added: “The work that the Northern Powerhouse Investment Fund and Mercia have been doing over the last five years has been transformational for businesses in Yorkshire and Humber.

"Since it launched five years ago, businesses have been able to thrive and achieve their goals, using investment to create jobs, launch new products, and expand into new markets.

"I’m excited for the future opportunities that this fund will support, and build, creating a stronger North.”

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.