Bank launches Midland Engine fund
The British Business Bank has today announced the first wave of its £250 million Midlands Engine Investment Fund, with the launch of £120mm of small and medium-sized enterprise debt finance.
It is designed to provide greater support to the region’s smaller businesses, accelerate economic growth and promote job creation – in line with the Government’s Midlands Engine Strategy.
The fund’s launch has been marked with the publication of a new report on the current state of the regional economy and funding landscape. Spotlight: The Midlands Engine Investment Fund, draws on the British Business Bank’s own research together with other publicly-available data.
It highlights the opportunities for ambitious, fast-growth businesses across the Midlands Engine area to reach their economic potential.
The report highlights how the MEIF will unlock the potential of the region’s small businesses, while detailing the current economic strengths and parameters of the region.
The Midlands economy contributes 13 per cent of the UK’s economic output and 14 per cent of all high-growth businesses are located in the region
The fund will play a vital role in fuelling regional growth. It is the result of close collaboration between the British Business Bank, the Department for Business, Energy and Industrial Strategy, the Department for Communities and Local Government and 10 local enterprise partnerships in the East & South East Midlands and West Midlands. It brings together new and existing funding from Central Government, the European Regional Development Fund, British Business Bank and European Investment Bank.
The £120m fund is composed of two separate lots – £30m of small business loans valued at £25,000 to £150,000, as well as £90m of debt finance worth £100,000 to £1.5m. The £120m fund is part of a wider £250m commitment, with further funding to be made available in due course.
Sajid Javid, Secretary of State for Communities and Local Government and Midlands Engine ministerial champion, said: “The investment fund is a key part of our Midlands Engine strategy to help create more jobs and boost skills in the region. This financial support will enable local businesses to grow, move in to new markets and boost productivity.”
Patrick Magee, chief commercial officer at the British Business Bank, said: “The MEIF will play a pivotal role in plugging in the gaps currently present in the small business funding landscape, ensuring that all businesses have access to the finance they need to grow. Currently, younger small businesses and those looking to scale up, the very businesses that have the greatest potential for job creation, are more likely to have their applications for external finance rejected. We want to mobilise these businesses, supporting organisations of varying sizes and stages of development across the Midlands.”
For more information on how to access finance from the MEIF and on the nature of funds available, visit the MEIF Website.
