We asked the Midlands BCRS Business Loans team – Louise Armstrong, Dave Malpass, Angie Preece, Lynn Wyke, and Mark Savill – for their insight and advice on the MEIF and the influence it has on SMEs in the region.
Small and medium-sized businesses are the backbone of the Midlands economy, but many still struggle to access suitable finance. The Midlands Engine Investment Fund (MEIF) provides funding for businesses that don’t always fit traditional bank lending criteria.
Through a network of specialist fund managers, the MEIF supports businesses across the Midlands with loans from £25,000 to help businesses expand their teams, open more locations, or develop new products.
What is the Midlands Engine Investment Fund?
The Midlands Engine Investment Fund (MEIF) was a collaboration between the British Business Bank and 10 Local Enterprise Partnerships in the West, East and South East Midlands supported by the European Regional Development Fund.
Launched in early 2017, it aimed to fuel SME growth in the region by providing more than £300 million of investment to address funding gaps for businesses with fewer than 250 employees.
New entrepreneurs and growing businesses could apply for smaller loans between £25,000 and £150,000 to bridge gaps in funding or boost development projects. This supported SMEs that may have struggled to access traditional funding.
The investment period for MEIF finished at the end of 2023, with a new iteration, Midlands Engine Investment Fund II (MEIF II), introduced in spring 2024.
How does the MEIF work?
The MEIF doesn’t directly invest in small businesses. Instead, the MEIF appoints fund managers, like BCRS. Businesses applying for support receive finance through a range of funds, including Small Business Loans, Debt Finance, Proof of Concept and Equity Finance.
Certain sectors were not eligible for MEIF funding, including property development, shipbuilding and agriculture. The fund could not be used for refinancing existing commercial borrowing or helping failing businesses either.
How did BCRS use the MEIF?
In 2023, BCRS passed a lending milestone by delivering £15 million to businesses in the West Midlands through MEIF. This supported more than 1,400 businesses, created over 5,500 jobs, and safeguarded over 1,400 roles.
Stephen Deakin, Chief Executive at BCRS Business Loans, said: “Small businesses are the backbone of our economy and a force for social good. Improving access to finance not only supports business growth but also strengthens the local community. We believe that no viable business should go unsupported.”
What is the MEIF II?
The Midlands Engine Investment Fund II builds on the success of the original fund and provides £400 million in funding for smaller businesses. This type of fund breaks down barriers and difficulties that SMEs face when trying to access finance.
Supported by the British Business Bank, the MEIF II continues to offer early-stage finance for smaller businesses across the West Midlands, Staffordshire, Shropshire, Herefordshire, Warwickshire, and Worcestershire.
Loan amounts range between £25,000 and £2 million to help businesses start up, scale up or stay ahead. This could be through product innovation, needing investment to refresh premises, or even moving into a bigger site.
How does BCRS use MEIF II?
By the end of 2024, 35 small businesses across the West Midlands received support from MEIF II via BCRS. It brought an economic impact of £14.7 million to the region.
Small and medium-sized businesses that have accessed the MEIF II through BCRS include video production agencies, production companies, construction firms, and recruitment businesses.
The MEIF II contributed to BCRS reaching its £100 million lending milestone in 2024, helping 1,594 businesses that were unable to access traditional finance. Since 2002, BCRS has generated £518 million in economic impact across the West Midlands and Wales.
What’s the difference between MEIF and MEIF II?
MEIF II is the second iteration of the Midlands Engine Investment Fund, launching after the original programme concluded in 2023. While MEIF provided more than £300 million in funding, MEIF II aims to help SME investment by a further £100 million.
How does the MEIF support SMEs?
There are four ways the Midlands Engine Investment Fund supports small and medium-sized businesses across the Midlands:
- Flexible funding solutions from smaller loans to larger investments
- Helping start-ups and established business grow and scale
- Bridging finance shortfalls that businesses may not be able to get from traditional funding sources like high street banks
- Backing new ideas and innovation across the Midlands
Want to apply for MEIF-funding?
If you’re an SME based in the Midlands and looking for support with business expansion or growth, get in touch with our excellent-rated team today to discuss your eligibility or fill out an enquiry form below.
