£400m SME fund set to launch in the Midlands

SMEs in the region could be set for a major boost after the Midlands Investment Fund (MEIF) revealed plans to launch a new £400m investment fund next year.

MEIF II will be delivered by the British Business Bank – bringing the total the bank has specifically earmarked for investment in the Midlands to over £700m since 2017. The cash pot will be backed by the lender’s new Nations and Regions Investment Fund.

Since its inception, MEIF has invested more than £200m in the Midlands, supported the creation of more than 2,370 jobs across 595 Midlands businesses and unlocked £301m of private sector co-investment.

Ken Cooper, managing director of venture solutions at the British Business Bank, said: “This £400m commitment to the Midlands Engine Investment Fund II builds on the success of the first Midlands Engine Investment fund, which has already supported nearly 600 innovative and ambitious businesses to access the funding they needed to grow.

“The new fund will further develop the region’s economic prospects through an increase in the supply and diversity of early-stage finance for small businesses, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance.

“The Midlands has a long history of entrepreneurship and by backing entrepreneurs and businesses with growth plans MEIF2 will have a positive impact on the region’s economy.  The businesses we back will be creating skilled jobs, fuelling green growth and introducing innovation in products and processes.”

MEIF II will operate across three tiers: smaller loans (£25k-£100k), debt (£100k-£2m) and equity (up to £5m).