The British Business Bank today (August 29) announced the first wave of its £250million Midlands Engine Investment Fund – with the launch of £120m of debt finance for small and medium-sized enterprises (SMEs) – which is now available to businesses across the D2N2 Local Enterprise Partnership area.
Aimed at eliminating regional imbalances in funding, the British Business Bank is keen to support fast-growth organisations and businesses looking to expand into new markets and boost productivity, supporting job creation.
The Midlands Engine Investment Fund (MEIF) is the result of close collaboration between the British Business Bank; the Department for Business, Energy and Industrial Strategy; the Department for Communities and Local Government; and ten Local Enterprise Partnerships (LEPs) in the East, South East and West Midlands (including D2N2) It brings together new and existing funding from Central Government, the European Regional Development Fund (ERDF), British Business Bank and European Investment Bank (EIB).
The MEIF project 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 (ESIF) Growth Programme 2014-2020 and the European Investment Bank.
Up to £78.5million of funding for the MEIF will come from England’s ERDF funding as part of the ESIF programme. ESIF programmes are run through Local Enterprise Partnerships, meaning D2N2 and its fellow Midlands LEPs will be jointly funding the MEIF programme. D2N2 is set to contribute £11.75million from its ERDF allocation to the MEIF.
The MEIF covers the following LEP areas: Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2), Greater Lincolnshire, Leicester and Leicestershire, and South East Midlands in the East & South East Midlands; and the Black Country, Coventry & Warwickshire, Greater Birmingham & Solihull, Stoke-on-Trent and Staffordshire, The Marches, and Worcestershire in the West Midlands.
The £120million fund is composed of two separate lots – £30m of small business loans valued between £25,000 and £150,000, as well as £90m of debt finance worth between £100,000 and £1.5million. The £120million fund is part of a wider £250m commitment, with further funding due to be made available later this autumn (2017).
The fund’s launch today has been marked with the publication of a new report on the current state of the regional economy and funding landscape. Spotlight: The Midlands Engine Investment Fund, draws on British Business Bank research, together with other publicly-available data. It highlights the opportunities for ambitious, fast-growth businesses across the Midlands Engine area to reach their economic potential. A copy can be read online HERE.
The report highlights how the MEIF will unlock the potential of the region’s small businesses, while detailing the current economic strengths and parameters of the region:
- the Midlands economy contributes 13% of the UK’s economic output
- 14% of all high-growth businesses are located in the region
- five-year business survival rate is higher in the East and West Midlands than in London.
Sajid Javid – Secretary of State for Communities and Local Government, and the Midlands Engine Ministerial Champion – said: “The Investment Fund is a key part of our Midlands Engine strategy to help create more jobs and boost skills in the region. This financial support will enable local businesses to grow, move into new markets and boost productivity.”
Greg Clark, Secretary of State for Business, Energy and Industrial Strategy commented: “The UK is a world leader in business and innovation. This is why we want all corners of the country to experience the benefits of enterprise, growth and jobs created by new businesses.
“The Midlands Engine Investment Fund is an important part of our modern Industrial Strategy, which will help entrepreneurs across the thriving Midlands region access the funding and support they need to start, grow and invest in their future.”
Patrick Magee, Chief Commercial Officer at the British Business Bank said: “The MEIF will play a pivotal role in plugging in the gaps currently present in the small business funding landscape, ensuring that all businesses have access to the finance they need to grow.
“Currently, younger small businesses and those looking to scale up, the very businesses that have the greatest potential for job creation, are more likely to have their applications for external finance rejected. We want to mobilise these businesses, supporting organisations of varying sizes and stages of development across the Midlands.”
For more information on accessing finance from the MEIF and on the funds available, visit the MEIF website at www.meif.co.uk
For further information on this Midlands Engine Investment Fund press release please contact Story Comms, PR agency for the MEIF, on Amanda@wearestorycomms.com or 07766 465670; OR sophiez@wearestorycomms.com on 07913 343601 or 07432 460201.
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