Lender appointed to deliver £17m to Midlands Engine SMEs
Specialist lender BCRS Business Loans has been appointed to deliver £17m of loans to SMEs working within the Midlands Engine.
The body, which has evolved from the Black Country Reinvestment Society, has been appointed as a fund manager for the Midlands Engine Investment Fund.
Specifically, BCRS will manage the Small Business Loans fund in the West Midlands and will oversee the delivery of the £17m to SMEs over the full life of the fund.
Loans will be available from £25,000 to £150,000 for a wide range of projects, including start – up businesses, working capital, expansion projects, leasing commercial premises and asset acquisitions.
The Midlands Engine Investment Fund (MEIF), operated by the British Business Bank, has been established to support start-up and existing businesses in the Midlands needing investment for growth.
Paul Kalinauckas, chief executive of BCRS Business Loans, said the service would be a vital support arm for firms unable to access finance from traditional lenders.
He said the body wanted to support growing SMEs and pledged that “no viable business” would be unsupported.
“With robust systems in place and an 18-strong team, we are well positioned to meet the targets of this initiative and support even more businesses,” he said.
The MEIF 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. The initiative is also supported by the Department for Business, Energy and Industrial Strategy as well as Local Enterprise Partnerships across the Engine area.
Patrick Magee, Chief Commercial Officer at the British Business Bank said: “The Midlands Engine Investment Fund will build relationships with the region’s diverse small business community, through its appointed fund managers and its own relationship managers.
“MEIF will play a pivotal role in plugging the gaps currently present in the funding landscape, seeking to ensure that all businesses have access to the finance they need to grow.
“BCRS will have an instrumental role in the successful allocation of the fund, and we’re looking forward to working with the team to mobilise fast-growth businesses across the region.”
Elsewhere, confirmation has also come on the appointment of Maven Capital Partners to manage two separate fund entities as part of the MEIF. Maven Debt Finance makes available two funding streams for regional businesses, with £50m in the West Midlands and £40m in the East & South East Midlands.
In a statement, Maven said it had a “long established record of working with advisers and SMEs across the Midlands, and has made a number of significant investments in recent years” – although it did not specify what they were.
The firm said it was in the process of strengthening its regional presence with the opening of an East Midlands office during the next few weeks, and was also making a number of key local appointments to the Midlands investment team.
“This additional resource will support Maven in deploying MEIF funds and ensure that Maven executives can provide comprehensive coverage and work with SMEs across the full MEIF area,” it said.
