British Business Bank regional investment funds
Government-backed funds for smaller businesses in each nation and region, offering loans from £25,000 to £2 million and equity up to £5 million through local fund managers. Terms are commercial, not subsidised.
- Secured on assets
- Debenture (charge over company assets)
- Personal guarantee likely
- Shares
How it works
The British Business Bank, the government's economic development bank, runs the Nations and Regions Investment Funds. Each fund covers one area:
- Northern Powerhouse Investment Fund II (the North of England)
- Midlands Engine Investment Fund II
- South West Investment Fund
- East of England Investment Fund
- South East Investment Fund
- Investment Fund for Wales, Investment Fund for Scotland and Investment Fund for Northern Ireland
London is not covered by any of these funds.
The funds do not lend or invest directly. Each one appoints fund managers, and you apply to them. Across the funds the offer is broadly the same: smaller loans and debt finance from £25,000 to £2 million, and equity investment up to £5 million. The fund managers can invest on their own or alongside banks and private investors, so they can help when a bank will only fund part of what you need.
To apply, your business must be headquartered in the fund's area or have a significant operating presence there.
Upsides and downsides
Upsides
- Aimed at businesses that might otherwise not get finance
- Loans and equity from the same fund, so one enquiry can cover both
- Can fund alongside your bank or other investors to fill a gap
- Local fund managers who know your area
Downsides
- Commercial terms, so loans can cost more than a mainstream bank loan
- Not available in London
- You deal with several fund managers, each with its own criteria
Risks
- Personal guarantees or security on business assets for loans
- Losing some ownership and control if you take equity
- Debt the business cannot repay if growth plans slip
What it costs
- How it is priced
- Interest and fees on loans, or shares for equity, set by each fund manager on commercial terms
- Costs that are easy to miss
- Arrangement fees on loans
- Legal costs for equity deals
- Equity investors will expect a say in big decisions and a way to sell their shares later
Loans from £25,000 to £2 million. Equity up to £5 million.
Have a quote? True cost of a loan: work out the APR-equivalent and total cost
Does it fit?
Could fit when
- You are a smaller business with a growth plan that a bank will not fully fund
- You need between £25,000 and £2 million in loans, or up to £5 million in equity
- You are based outside London
Unlikely to fit when
- Your business is based in London
- You need less than £25,000
- You are a large business (the funds are for smaller businesses)
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Public limited company, Community interest company, Co-operative or community benefit society
- Your business must be headquartered in the fund's area, or have a significant operating presence there
- For smaller businesses (SMEs)
- Each fund manager sets its own lending and investment criteria, and some sectors are not eligible
- Equity is only for companies that can issue shares
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all government-backed and community lending
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- Business plan
- Financial forecasts
- Recent accounts
Regulation and protections
The funds are set up by the British Business Bank and run by commercial fund managers. Which protections and complaint routes apply depends on the fund manager and the type of finance, so check the agreement.
The fund managers decide on each application. The British Business Bank does not give financial or business advice.
Types of provider: Fund managers appointed by the British Business Bank for each regional fund.
Also consider
Sources
- British Business Bank: Nations and Regions Investment Funds · checked 7 October 2026
- British Business Bank: Northern Powerhouse Investment Fund II · checked 7 October 2026
- British Business Bank: Northern Powerhouse Investment Fund II, frequently asked questions · checked 7 October 2026
- British Business Bank: South East Investment Fund · checked 7 October 2026