The first tranche of the Midlands Engine Investment Fund is open for business as the British Business Bank launches £120million of debt finance
Earlier this week The British Business Bank announced the first wave of its £250million Midlands Engine Investment Fund (MEIF), with the launch of £120million of SME debt finance, which is now available to businesses across the region.
Aimed at eliminating regional imbalances in funding, it will support fast-growth organisations and businesses looking to expand into new markets and boost productivity, supporting job creation.
The MEIF will be allocated by appointed fund managers – BCRS Business Loans has been chosen to take charge of the distribution of the Small Business Loans fund across the West Midlands.
BCRS Business Loans will oversee the delivery of £17 million to small and medium sized businesses 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 launch of the 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 10 Local Enterprise Partnerships (LEPs) in the East & South East and West Midlands. 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 £120million fund is composed of two separate lots – £30million of small business loans valued between £25,000 and £150,000, as well as £90million of debt finance worth between £100,000 and £1.5million. The £120million fund is part of a wider £250million commitment, with further funding due to be made available later this Autumn.