The British Business Bank (BBB) has announced the first wave of its £250m Midlands Engine Investment Fund, with the launch of £120m worth of SME debt finance, in a move designed to provide greater support to the region’s SMEs, accelerate economic growth and promote job creation – in line with the Government’s Midlands Engine Strategy.
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.”
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, (follow this Link http://bit.ly/2voea6R to see the report.) draws on the BBB’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% of the UK’s economic output
• 14% of all high-growth businesses are located in the region
• Five-year business survival rate is higher in the East and West Midlands than in London
The Midlands Engine Investment Fund will play a vital role in fuelling regional growth. It is the result of close collaboration between the BBB, 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 (ERDF), BBB and European Investment Bank (EIB).
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. For more information see www.meif.co.uk