Midlands Engine fund launched

The first phase of the Midlands Engine Investment Fund was launched at the end of August.

The British Business Bank announced the first wave of its £250 million Midlands Engine Investment Fund with the launch of £120 million worth of SME debt finance.

The move 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 launch was marked by 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 Engine Investment 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 (LEPs) in the East and South East Midlands and West Midlands.

It brings together new and existing funding from Central Government, the European Regional Development Fund (ERDF), British Business Bank and European Investment Bank (EIB).

The £120 million fund is composed of two separate lots: £30 million of small business loans valued at £25,000 to £150,000 and £90 million of debt finance worth £100,000 to £1.5 million. The £120 million fund is part of a wider £250 million 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.”

For more information on how to access finance from the MEIF and on the nature of funds available, visit the MEIF website.

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.