The British Business Bank has launched its £400m Midlands Engine Investment Fund II, unlocking additional funding to help smaller businesses in Lincolnshire 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.
British Business Bank CEO Louis Taylor 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.“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.”
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 299 smaller businesses in the East and South East 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 East and South East Midlands. First Enterprise – Enterprise Loans will manage the smaller loans part of the fund (£25,000 to £100,000), Maven Capital Partners will be responsible for larger loans (£100,000 to £2 million), and Mercia Ventures will manage equity deals (up to £5 million).
