A new £250m Midlands Engine Investment Fund aimed at boosting the region’s economy and supporting the growth ambitions of its 460,000 smaller businesses.

The fund, a joint agreement between the British Business Bank and ten Local Enterprise Partnerships (LEPs) in the East & South East and West and East Midlands, is expected to bring together legacy funding from existing programmes, new funding from the British Business Bank and new European funding into a single ‘fund-of-funds’ structure.  The funds will provide equity, debt, small business loans and early stage / proof-of-concept funds.

The British Business Bank has also committed to strengthening the links between its national access to finance programmes and local business support, including employing dedicated staff to work across the Midlands region.

Equity Fund – Investments up to £2m. Initial allocation of c. £80m, at least 20% of investments will be in amounts of under £250,000 and at least 70% will be in amounts of under £750,000.

Debt Fund – Loans from £100k up to £1.5m. Initial allocation of c. £120m, at least 25% of loans under £200,000 and at least 70% of loans under £500,000.

Small Business Loans Fund – Loans from £25k up to £150k. Initial allocation of c. £30m, at least 25% of loans under £50,000 and at least 70% of loans under £75,000.

Early Stage / Proof-of-Concept Fund – Investments up to £750k. Initial allocation of c. £20m, at least 50% of investments will be in amounts of under £250,000.

This new source of funding is aimed at higher-value start-ups and rapidly growing businesses and seeks to address a number of barriers including a grant dependency culture, lack of awareness or understanding of different types of finance and low or cautious ambitions for some businesses.

 

To see quick reference guide please click here – MEIF Quick Reference Guide

To see spotlight report please click here – MEIF Spotlight Report

Further information is available at meif.co.uk