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GCBF and River Capital drive North West growth with over £1m NPIF II investment boost

Press release 07 February 2025

GC Business Finance (GCBF) and River Capital have provided £1.4m worth of funding to 23 businesses through the Northern Powerhouse Investment Fund II (NPIF II) following its launch in March 2024. The funding comes from NPIF II - GC Business Finance & River Capital Smaller Loans, which is managed by the consortium as part of NPIF II.

Portrait of the team from GC Business Finance & River Capital

Businesses that have secured funding are from a variety of sectors and localities in the North West, from retailers and technology innovators to speciality cafes, and range from new businesses seeking their first loan, through to more established businesses seeking growth capital.

Birkenhead-based domiciliary care company, House of Care, secured a £25,000 NPIF II funding package in what was one of the first NPIF II deals in the Liverpool City Region. The investment will support its expansion plans, enabling it to take on additional contracts and create jobs in the region.

Manchester-based cafe, Black Milk, also secured NPIF II funding. Black Milk started out as a milkshake and cereal café, selling baked goods, and has since expanded its product offering to include pancakes, gelato and more. It will use the funding to support its future growth, and has recently secured a contract with Selfridges.

Preston-based Private Ambulance Service, a dedicated collection and delivery service of the deceased, secured £25,000 from NPIF II. An early stage business that required crucial working capital to support its expansion plans, investing £5,000 in new equipment. It will use the additional funding to grow its fleet and enhance its website, fund an advanced IT booking system, and provide direct cremation guidance.

Lymm-based Tilly and Ted Homeware, an online, high-end homeware store, secured £55,000 from NPIF II, following 53 per cent year on year growth in turnover. The funding will help to scale the business, increase profit margins, hire a part time team member, and eventually expand its product offering to an international market.

Andy Nichols, Investment Manager at GC Business Finance, said:

The NPIF II smaller loans funding is crucial for businesses looking to secure £25k to £100k worth of funding to support growth. Alongside River Capital, we have supported some brilliant businesses in the North West.

From supporting Black Milk to purchase and supply stock to fulfil orders placed by high street retailers, to backing Tilly and Ted as it sets out to conquer international markets, it is amazing to have provided over £1m worth of funding to support the North West’s growing businesses. The North West is home to some incredible businesses, and we can’t wait to work with even more in the months and years ahead.

John Gray, Head of Debt at River Capital, said:

After working with GCBF on the first Northern Powerhouse Investment Fund, which delivered £13.5m of funding to businesses, it has been great to partner once again to support with the provision of NPIF II, having already provided over £1m of smaller loans to North West-based businesses through the fund.

We have worked to reach even further afield, targeting businesses in hard-to-reach areas like Cumbria, ensuring that NPIF II is reaching the whole of the North West. It has been a delight to support a wide range of businesses, helping the likes of House of Care and Private Ambulance Service as they go through exciting periods of growth. We look forward to working with these businesses more closely in the coming months, as well as hearing from new businesses seeking finance.

Sue Barnard, senior investment manager, at the British Business Bank, said:

Almost a year on from its launch, it is brilliant to see such a range of businesses driving their growth with the support of NPIF II funding. After GCBF and River Capital’s success through the first NPIF, it’s great to see the consortium continue, and the £1m+ they have provided through smaller loans so far has been transformational for these local businesses. We look forward to seeing how they continue to support the North West, ensuring that businesses across the region, including those in harder-to-reach communities, can secure the funding they need to grow.

The £660m Northern Powerhouse Investment Fund II (NPIF II) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Further Information

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Notes to editors

About GC Business Finance

GC Business Finance (‘GCBF’) is a responsible lender. It exists to give small businesses and entrepreneurs the confidence to be successful in their growth journeys.

By offering debt (loans) and equity finance to start-ups, early stage and growth businesses, it is committed to helping companies realise their potential.

The organisation is powered by a unique technology platform, but has a team of financial experts on the ground who are immersed within the local small business eco-systems. Our team helps entrepreneurs navigate the financial landscape, and supports finance for growth.

GC Business Finance offers loans and equity funding from £500 to £2m to businesses looking to start up, grow and thrive.

For more information, visit the GC Business Finance website.

About River Capital

River Capital exists to fuel ambitions. This includes the ambitions of our clients and our colleagues as well as those of the management teams we invest in.

We do that by managing a range of debt and equity funds which focus primarily on the North West, totalling over £100m, from our offices in Liverpool and Manchester.

For more information, visit the River Capital website.

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding.  NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development. 
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

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