The £250m Midlands Engine Investment Fund aims to boost the Midlands economy and support 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 West and East & South East Midlands, brings 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 debt and early stage equity funding.

The British Business Bank has also strengthened the links between its national access to finance programmes and local business support, employing Senior Relationship Managers to work across the Midlands region.

Equity Fund – Investments up to £2m. Initial allocation of £34½m in the East & South East Midlands, 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 £40m in the East & South East Midlands, 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 £13m in the East & South East Midlands, 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 £23m across the Midlands, at least 50% of investments will be in amounts of under £250,000.

This 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.

Further information is available at meif.co.uk

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

To see spotlight report please click here – MEIF Spotlight Report