British Business Bank investment funds boost regional SME finance

The British Business Bank’s Nations and Regions Investment Funds (NRIF) programme is helping to address regional finance gaps and improve access to funding for smaller businesses across the UK, according to an independent evaluation.

The Early Assessment Report, undertaken by SQW Ltd, found that the programme is performing well, with evidence of improvements in business productivity, innovation and growth.

By September 2025, the programme had delivered 951 investments to 877 businesses, totalling £294m, alongside £233m of additional private sector investment.

The evaluation found that 81% of surveyed businesses would either have been unable to secure finance without the programme or would have obtained funding on a smaller scale or over a longer period.

Among businesses receiving investment, 77% reported increased productive capacity, 71% improved efficiency and 66% enhanced workforce skills. The programme also supported approximately £45.5m in additional research and development investment.

Manufacturing accounted for 15% of businesses supported, followed by information and communication (14%) and professional, scientific and technical activities (13%).

Adam Kelly, Managing Director of Debt & Regional Funds at the British Business Bank, said: “This evaluation demonstrates the important role the Nations and Regions Investment Funds are playing in improving access to finance for ambitious smaller businesses across the UK.

“While it remains early in the programme’s lifetime, it is encouraging to see strong evidence that the fund is supporting businesses that may otherwise have struggled to secure finance and helping to create the conditions for long-term economic growth.”

The evaluation covered six funds within the £1.6bn programme, including the Northern Powerhouse Investment Fund II, Midlands Engine Investment Fund II and the investment funds for the South West, Scotland, Wales and Northern Ireland.

More recent figures show that, by July 2026, the funds had invested over £465m in 1,254 businesses, attracting a further £417m in private sector investment.

Following the launch of additional funds covering the South East and East of England, the British Business Bank is now providing targeted investment support across every UK nation and region outside London.