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


Jo Whitfield
Fund Director
Published:
Stockport Village Nursery

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 the North West, Cumbria and Tees Valley. Businesses have received the money into their accounts in as soon as 9 working days from the application date, with the average being just 17 days. 

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

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.”

Gary Guest, FW Capital’s Fund Director in the North West, said: “FW Capital has provided a crucial and swift lifeline to SMEs across the region through our NPIF loans which are backed by CBILS

“It is heartening to have already reached the £7.5m milestone in just six weeks. We look forward to continuing to support SMEs by helping them access the finance they need during these challenging times.” 

One business that recently benefitted from an NPIF loan backed by CBILS is Stockport Village Nursery, which received funding to enable the business to immediately make adaptations in-line with new social distancing rules.

The loan ensures that all the children can return to class sizes no larger than 16 as specified by the guidelines, in addition, it will provide working capital headroom in case there is a shortfall in child places due to more parents working from home.

Managing Director David Carroll said: “The safety of our staff and children is paramount.  At full capacity we can accommodate up to 120 children, but we need to make adaptations so that we can reduce class sizes, giving comfort to parents. We approached the bank for a loan but found it difficult to get a response. We were fortunate a family member, Mike Berger, has worked with FW Capital before and he introduced us. He supported us with the financial model and other documents we needed to prepare.

The entire investment process only took around three weeks.  There was constant communication throughout the process and there was never any doubt that we would receive the money which really took the pressure off.”

Another business that benefited from an NPIF loan backed by CBILS is Middlesbrough-based audio-visual equipment supplier IOTA Enterprises Limited, which received a £250,000 NPIF loan backed by CBILS 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. 

Ian Vermeulen, IOTA Enterprises Managing Director, 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.” 

Grant Peggie at British Business Bank, said: “FW Capital has been key in the delivery of NPIF loans backed by CBILS, helping us to provide vital support to businesses across a number of sectors following the pandemic. To deliver £7.5m in CBILS loans over a period of just six weeks is a fantastic achievement and it’s great to see Northern businesses receiving support from NPIF-backed CBILS loans have already proven a valuable tool in addressing regional disparities particularly during Covid-19.”