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NPIF II strikes first deal in Lancashire with award-winning wood finishing products brand

Press release 29 July 2024

people standing with a display of paint tins and paint brushes on a table

The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in Lancashire since the launch of the £660m fund in March this year. 

Based in Blackburn, Littlefair's Wood Finishing Products, an award-winning and environmentally-friendly wood finishing products brand, has raised £75,000 from NPIF II – GC Business Finance and River Capital Smaller Loans, which is managed by GC Business Finance and River Capital and part of the Northern Powerhouse Investment Fund II. 

Building on the first Northern Powerhouse Investment Fund, businesses across the North can access smaller loans finance from £25,000 to £100,000 with NPIF II to start up, scale up or continue on their growth journey. 

With the funding from NPIF II, Littlefair’s will be able to expand its team, enabling it to meet growing demand in the UK and overseas. The investment will help the business hire three new staff in the next 12 months. It will also support the team in purchasing raw materials to increase production capacity, with all products hand manufactured in Blackburn, using British-sourced materials.

The growth of the business follows its successful online expansion into the US, where the wood finishing products have consistently sold out its stock on its Amazon US storefront.

The family-run business was founded in 2016 to provide a water-based alternative to typically solvent-based wood stains. Littlefair’s water-based products are easier to use and more environmentally friendly, winning ‘Eco-Friendly Wood Finishing Brand of the Year’ award from the IE100 Awards 2023. The business prides itself on the care that goes into its products and its exceptional customer service, earning the team over 1,000 five-star reviews on Trustpilot.

We’re proud to produce hand manufactured wood finishing products, made right here in Britain. Our products combine high-quality with sustainability, formulated to be kinder to the environment.

When we faced barriers in accessing other streams of finance, Boost Lancashire referred us to the Northern Powerhouse Investment Fund II who guided us through every step of the application process. This funding will catapult our business into its next phase of growth, allowing us to add to our team, build on our success and reach our full potential.

Rob Littlefair Director, Littlefair’s
Littlefair’s is a great example of a small business making big steps towards a more sustainable future. Iain Duncan at Boost Business Lancashire was a great help for Littlefair’s and has worked closely with the business before introducing them to us for investment. Rob and the team have built a brand that is proudly British and produced with the utmost care. With a strong presence in the North West, and a successful storefront on Amazon UK and US, we are excited to see Littlefair’s grow their team and develop further. Andy Nichols Investment Manager, GC Business Finance
Accessing finance is vital for ambitious small businesses like Littlefair’s, and the NPIF II investment illustrates that, with the right support, sustainable growth is achievable. As one of the first deals for NPIF II, Littlefair’s success will encourage other business owners to access finance and look towards the Fund as a valuable resource to achieve their growth goals. Simon Cunnington Director, British Business Bank

The £660m Northern Powerhouse Investment Fund II (NPIFII) 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 the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, the Northern Powerhouse Investment Fund II (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: Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, City of Kingston upon Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside, Sunderland.
  • For investment by NRIL at the sub-fund level - The investment from the Nations and Regions Investments Limited into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.
  • For investment by NPIF II sub-fund at the investee company level - The investment from the Northern Powerhouse Investment Fund II into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.

Smaller Loans from £25,000 to £100,000 – GC Business Finance & River Capital (North West), Business Enterprise Fund (BEF) (Yorkshire and Humber) and NEL Fund Managers (North East)

Business Loans from £100,000 to £2m – FW Capital (North West), Mercia (Yorkshire and Humber) and NEL Fund Managers (North East)

Equity Finance up to £5m – Prateura Ventures (North West), Mercia (Yorkshire and Humber), and Maven Capital Partners (North East)

Applications for funding are made directly to the relevant fund managers who can be contacted via the NPIF II webpages

www.northernpowerhouseinvestmentfund.co.uk

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