What are the Nations and Regions Investment Funds, and can your business use one?

This article is for business owners outside London who want to know what the British Business Bank's regional investment funds are, whether they work, and whether one could fund their business. On 13 October 2026 the British Business Bank published an independent early evaluation of its Nations and Regions Investment Funds (NRIF). Below we set out what it found, how much the funds offer, how to apply and how they compare with finance from lenders. Smart Funding Solutions is a broker, not a lender: we compare whole-of-market options across 300+ lenders, arranging funding from £10,000 to £20 million.

01What are the Nations and Regions Investment Funds?

The NRIF is a £1.6bn programme of regional funds run for the British Business Bank by appointed fund managers. Most of the funds offer smaller loans, debt finance and equity finance to smaller businesses. With the South East and East of England funds now launched, the British Business Bank says the programme covers every UK nation and region outside London. Its NRIF overview page lists the funds, including:

• Northern Powerhouse Investment Fund II: £660 million for the North of England. See business finance in the North West, North East and Yorkshire.
• Midlands Engine Investment Fund II: £400 million. See business loans in the Midlands.
• South West Investment Fund: £200 million. See business loans in the South West.
• Investment Fund for Scotland: £150 million. See business loans in Scotland.
• Investment Fund for Wales: £130 million. See business loans in Wales.
• Investment Fund for Northern Ireland: around £100 million, offering debt and equity finance. See business loans in Northern Ireland.
• South East Investment Fund and East of England Investment Fund, the most recent to launch.

Each fund has a five-year investment period, followed by a five-year realisation and repayment period.

02What did the evaluation find?

The early assessment, carried out by the independent research company SQW, covers six funds (Northern Powerhouse II, Midlands Engine II, South West, Scotland, Wales and Northern Ireland) up to the end of September 2025. According to the British Business Bank's announcement, by then the funds had:

• made 951 investments in 877 businesses, worth £294 million;
• brought in £233 million of private sector investment alongside, or £0.79 of private money for every £1 invested;
• supported about £45.5 million of additional research and development investment.

Of the businesses surveyed, 81% said that without the funds they would have been unable to get finance, would have received less, or would have received it over a longer timeframe. 77% said they had grown their productive capacity, 71% had improved efficiency and 66% had increased workforce skills. Among firms that took equity, 57% were raising institutional finance for the first time. The most common sectors were manufacturing (15% of firms supported), information and communication (14%) and professional, scientific and technical activities (13%).

The programme has grown since. By July 2026 it had invested more than £465 million in 1,254 businesses, alongside £417 million of private sector investment.

03How much can a business get from a regional fund?

Deal sizes differ from fund to fund, so check the page for your area. As examples:

• The Northern Powerhouse Investment Fund II lists smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2 million and equity finance of up to £5 million.
• The South East Investment Fund lists debt finance from £25,000 to £2 million.

The British Business Bank gives uses such as leasing commercial premises, hiring staff, marketing, buying machinery or equipment and launching a new product or service.

£212,300A transaction we arrangedApproved, then nearly lost at completion. £212K consolidated.A property-title requirement threatened a consolidation deal at the last hurdle. We worked it through and kept the structure intact.

04Who can apply, and how?

The funds are aimed at smaller businesses in their area that can show growth potential, including firms that are new to external finance. You do not apply to the British Business Bank itself. Instead you make an enquiry through the website of the fund manager for your region. The fund manager then contacts you, may ask for more information, a formal application or a pitch deck, and makes the investment decision.

Because the funds are about growth, expect to explain your plans and back them with figures. Our guide to how lenders assess business loan applications covers what most funders want to see.

The British Business Bank gives uses such as leasing commercial premises, hiring staff, marketing, buying machinery or equipment and launching a new product or service.

05Regional fund or lender finance: which suits your business?

A regional fund is one source among many, and it does not suit every need. It fits best where a business has a growth plan and may welcome equity. Where the need is to spread the cost of equipment, bridge a cash flow gap or refinance, finance from lenders is often the more direct route:

• Growth Guarantee Scheme loans, another British Business Bank scheme, are offered through accredited lenders. Our Growth Guarantee Scheme guide explains who qualifies.
• Unsecured business loans fund growth without putting up property as security, usually with a personal guarantee.
• Asset finance spreads the cost of machinery and vehicles over their working life.
• Start-up business loans suit firms with a short trading record.

For equity-backed growth, see our report on UK venture capital in the third quarter of 2026, and for the wider choice beyond banks, our guide to alternative finance for SMEs.

06What it means for your funding

The evaluation suggests the regional funds are reaching firms that struggle to raise money elsewhere, so they are worth a look if you are outside London and planning to grow. Many businesses combine sources, for example an equity investment for growth alongside asset finance for equipment or invoice finance for working capital. Comparing your options side by side helps you choose the cheapest and most suitable mix.

To see which lenders could fund your plans alongside any regional fund, get your Instant Quotes to see your lender matches instantly, with no credit check. Lenders make every decision, and all finance is subject to status.