£10m boost announced for North West SMEs, creating ‘in excess of 700 new jobs’

North West based fund manager River Capital has secured a new injection of £10m from Greater Manchester Pension Fund (GMPF), and delivered by private credit investor TDC, to further scale its North West Business Growth Loans Limited (NWBGL) product offering.

Established by River Capital in 2022, NWBGL provides an alternative form of loan finance to SMEs in the North West, complementary to more traditional sources such as banks. The increased funding reflects the significant demand received to date, and is in addition to the existing £8m originally committed from cornerstone funder MSIF.

Loans are available to trading SMEs operating in most sectors, and can be used to support working capital, capital expenditure, acquisitions, management buyouts and other growth related activities. Particular focus will be on applicants who demonstrate evidence of strong social impact and positive ESG outcomes as a result of the finance.

Since launch, over £2.2m has been provided to 10 businesses which are anticipated to create over 100 jobs as a result. Recent SMEs supported include Shopify plus agency Velstar Limited and its acquisition of WeInfluence, and Designerwear, an e-commerce men’s fashion brand experiencing rapid expansion.

The injection from GMPF and TDC will boost the maximum loan offering to £500k, and enable the provision of financial assistance to over 80 SMEs across the North West whilst creating in excess of 700 jobs.

River Capital CEO Mark Borzomato commented on the announcement: “Since its inception, we have seen high demand for the NWBGL offering. We are therefore delighted to be able to secure additional funds to further support the region’s SME community and broaden the suite of funding options provided by River Capital.

“We and our investors are committed to fuelling the ambitions of the SMEs as well as driving economic growth. Businesses, and particularly SMEs, continue to face difficult trading conditions which have understandably made business lending more complex than ever.

“The resilience of entrepreneurs and SMEs continues to impress, but access to the vital funding they require remains a challenge. Alternative funds such as NWBGL remain critical to addressing this gap in the market. We look forward to working in close collaboration with GMPF, TDC and MSIF to make a significant positive impact in the region.

Mark Metcalf, Head of Operations at TDC, added: “Investment in the North West, and indeed across the North of England, remains a priority to help address historic imbalances. It’s great to see ambitious investors, like River Capital, helping to achieve this and driving job creation across the region, along with supporting innovative businesses and management teams.”

By Matthew Neville – Senior Correspondent, Bdaily

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