- The Midlands Engine Investment Fund II will deliver a £400m commitment of new funding for smaller businesses
- The fund will build on the success of the first Midlands Engine Investment Fund and support access to early-stage finance
- 440 West Midlands smaller businesses have already been supported by the Midlands Engine Investment Fund, creating more than 2,800 jobs in the region
29 February 2024: The British Business Bank is launching its £400 million Midlands Engine Investment Fund II today, unlocking additional funding to help smaller businesses in Worcestershire prosper and thrive.
The fund will drive sustainable economic growth by supporting new and growing businesses across the whole of the Midlands, through investment strategies that best meet the needs of these firms. It includes a range of finance options with loans from £25,000 to £2 million and equity investments up to £5 million to help small and medium-sized businesses start up, scale up or stay ahead.
The Midlands Engine Investment Fund II aims to build on the success of the inaugural Midlands Engine Investment Fund), a £300m fund which has already supported 440 smaller businesses in the West Midlands since its launch in 2017. The new fund will help hundreds more businesses to achieve their potential and further increase the supply and diversity of early-stage finance by providing options to firms that might otherwise be unable to secure investment. Funding is designed to help businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment.
Three fund managers have been appointed to manage the fund in the West Midlands. BCRS Business Loans will manage the smaller loans part of the fund (£25,000 to £100,000), Frontier Development Capital will be responsible for larger loans (£100,000 to £2 million), and Mercia Ventures will manage equity deals (up to £5 million).
Louis Taylor, Chief Executive Officer, British Business Bank said: “Small businesses are at the heart of The Midlands’ economy. Since launching in 2017, the first Midlands Engine Investment Fund has so far created more than 4,000 jobs across the region by backing 739 smaller businesses, boosting the region’s productivity by 70%.
“The first Midlands Engine Investment Fund provided a blueprint for how we can support entrepreneurs and founders, whoever they are and wherever they are in the region, to access the funds and support they need. This new fund will allow us to continue supporting business owners across the Midlands, whether they’re at the start of their journey or are already running an established firm.
“Promoting growth by ensuring entrepreneurs can access the finance they need regardless of where and who they are is one of the Bank’s strategic objectives, and vital to unlocking the full potential of the UK’s smaller businesses.”
Exchequer Secretary to the Treasury, Gareth Davies MP said: “Small businesses are the engine of the economy, which is why having access to funding like this is vital to help them thrive and grow, creating jobs and spreading opportunity everywhere.
“As the birthplace of the Industrial Revolution, the Midlands propelled the UK into a new era of technological and economic growth and now the next generation of entrepreneurs will have the support they need to continue this success”.
In 2018, Sign Solutions, specialists in providing high quality communication support services for Deaf and hard of hearing individuals in the public and private sector, secured a significant equity investment from the first Midlands Engine Investment Fund.
Historically focused on the provision of face-to-face interpreters, BSL translations and training, Sign Solutions innovative video interpreting service has improved the accessibility and financial viability of interpretation for Deaf people, by providing NRCPD qualified BSL Interpreters online, enabling organisations to communicate in person or over the phone via an online BSL video Interpreter.
Clare Vale, Managing Director, Sign Solutions said: “We were absolutely thrilled to receive the investment from the Midlands Engine Investment Fund. The funding helped us to grow our business and enhance services offered to new and existing clients while promoting equal access for all. The new roles that were created to support our growing client base and the promotion of our on-demand video interpreting service has helped us to reach public and private sector organisations to become aware of their responsibilities regarding equality and accessibility. Every organisation should be equally accessible to all their clients, customers, employees and patients.”
Following today’s launch, the British Business Bank will be holding a series of information roadshows aimed at people working with smaller businesses including enterprise agencies, advisors, accountants, law firms and more. The first of these sessions will be held in Lincoln on 11th March 2024, with additional sessions held in Leicester, Wolverhampton, and Coventry, with further locations planned for April and May 2024.
To find out more and apply for funding, visit: www.midlandsengineinvestmentfund.co.uk