£400m fund to support Midlands SMEs
A £400m investment fund to support SME growth across the Midlands will be launched early next year.
The Midlands Engine Investment Fund II (MEIF II) is being delivered by the British Business Bank as part of plans to level-up access to finance in the region through debt and equity funds.
It brings the total of funding earmarked for the region to more than £700m since 2017. It’s been used to help SME’s overcome challenges during the pandemic, supported regional economic growth and highlighted the region’s reputation for innovation.
Since its inception, MEIF has invested more than £200m into the Midlands, supported the creation of more than 2,370 jobs across 595 Midlands businesses, and unlocked £301m of private sector co-investment.
In 2022, an independent evaluation found that MEIF was responsible for a 73% increase in the headcount of firms supported, 33% of roles created were in research and development and four in every 10 roles were in the top 25% of UK salaries.
Ken Cooper, managing director, 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.”
The Midlands Engine Investment Fund II will operate across three tiers: smaller loans (£25k-£100k), debt (£100k-£2m) and equity (up to £5m).
The British Business Bank is now inviting proposals from potential fund managers to operate the Midlands Engine Investment Fund II via its website.
