Barclays is launching a new £500 million growth fund for small and medium-sized businesses in the north of England.
The fund is part of the bank’s commitment to support the government’s Northern Powerhouse initiative.
It aims to inject investment into businesses across the region with favourable terms for manufacturing, transport and logistics companies, helping them to grow and create new jobs.
The Barclays fund is intended for SMEs in the Northern Powerhouse region, including: established businesses with ambitious growth plans; start-ups with high growth potential; companies with early-stage equity funding and businesses focusing on innovation, R&D and technology.
Under the Northern Powerhouse Growth Fund, businesses can get an overdraft up to £250,000 without the need for property security for transport, business services, wholesales and manufacturing companies.
They can also get term lending fee-free up to £25,000, up to £100,000 lending without the need for tangible security, and cash flow funding to invest in acquisitions and organic business growth.
To top it off, they can get lending and debt support, which can be combined with the Northern Powerhouse Investment Fund.
Launching the fund, Jes Staley, Barclays Group CEO talked about the economic challenges and opportunities posed by the digital revolution, the growth in competition from emerging markets and Brexit.
‘The Northern Powerhouse is an initiative which would help the whole country to take those economic opportunities,’ he said.
‘As the UK prepares for Brexit, it’s vitally important that businesses, civic leaders and government work together to make the Northern Powerhouse a reality. That means supporting entrepreneurs and businesses to succeed, but it also means providing more ways into high quality work.
The bank will also be opening Eagle Labs – dedicated co-working spaces for promising start-ups to grow and collaborate – in Newcastle and Sheffield, adding to its existing labs in Salford and Liverpool.
More details on the fund and how to apply can be found at barclays.co.uk/business-banking or via a local relationship manager on 0333 202 7446.