FW Capital delivers £7.5m of NPIF and CBILS loans in six weeks

Sam Streckert of FW Capital and Ian Vermeulen of Iota Enterprises at his business premisses in Middlesborough. Photo: John Millard/UNP

In just six weeks, FW Capital has invested over £7.5m in Northern businesses through NPIF loans backed by CBILS from NPIF – FW Capital Debt Finance, which is part of the Northern Powerhouse Investment Fund.

FW Capital provides loans between £100k and £750k to SMEs that are experiencing lost or deferred revenues, leading to disruptions to their cash flow backed by the Coronavirus Business Interruption Loan Scheme (CBILS). Both new and existing customers are eligible to apply.

Since FW Capital launched their NPIF loans backed by CBILS, the funding has helped 24 businesses through two funds across the North of England with a focus on Tees Valley, Cumbria and the North West. Businesses have received the money into their accounts in 9 working days, with the average being 17 days.

The loans went to SMEs in a variety of sectors, including engineering, manufacturing, construction, health and education.

One business that benefited from an NPIF loan backed by CBILS is Middlesbrough-based audio-visual equipment supplier IOTA Enterprises, which received a £250,000 NPIF loan backed by CBILS from NPIF – FW Capital Debt Finance, part of the Northern Powerhouse Investment Fund, to help it mitigate the impact of the pandemic.

IOTA recently diversified its product range and was appointed as a preferred supplier of mounting solutions to a well-known subsidiary of Dublin-based multi-national DCC Group.

Funding has meant IOTA will be able to fulfil the £750,000 contract, as well as complete the development and launch of its planned new products, including a unique new 17 channel pre-amp, plus complimentary products such as CD and network streamers.

Investment also created four new jobs and safeguarded one job. IOTA is the first new FW Capital investee to receive CBILS funding.

IOTA managing director Ian Vermeulen said: “This investment allowed us to fulfil an important contract and to expand our product range.

“We are very grateful to the team at FW Capital for their support at this challenging time and look forward to further liaising with them as we move towards recovery.”

Since 2010, FW Capital has invested more than £154m into businesses and created or safeguarded more than 7300 jobs. It has expanded to a team of over thirty in offices across the North.

Joanne Whitfield, FW Capital’s fund director for Tees Valley, said: “Covid-19 presented significant challenges on an unprecedented scale for many businesses so we did everything in our power to get the funding out as quickly as possible. Investing over £1m on average per week, is testament to the team’s dedication to ensuring SMEs can access the funding they need to support their recovery from the pandemic.

“FW Capital is a long-term growth partner with teams across the region ready to offer practical support to both new and existing customers. Now as we begin to return to our new normal, we will continue to support them in this way, ensuring that together we safeguard jobs and protect our economy.”

Operating from the British Business Bank’s Sheffield head office, the Northern Powerhouse Investment Fund provides a mix of debt and equity funding (£25,000 to £2m).

It works alongside ten Local Enterprise Partnerships (LEPs), the combined authorities and Growth Hubs, as well as local accountants, fund managers and banks, to support Northern-based SMEs at all stages of their development.

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.

Delivered by the British Business Bank, via NPIF – FW Capital Debt Finance, CBILS will support the continued provision of finance to UK smaller businesses during the Covid-19 outbreak.

The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).