A new Midlands investment fund worth hundreds of millions of pounds is set to enable significant funding for Worcestershire smaller businesses.

The British Business Bank has launched its £400 million Midlands Engine Investment Fund II as a financial resource to facilitate sustainable economic growth.

The financial pool would offer a suite of finance options ranging from loans of £25,000 to £2 million, and equity investments of up to £5 million, to foster business development activities within the region.


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The fund would cater to small and medium-sized businesses' investment needs to grow, venture out, or envision ahead, enabling them to expand, innovate products or services, adopt new processes, nurture skill development and ensure capital equipment security.

The British Business Bank also outlined that the Midlands Engine Investment Fund II builds on its £300 million predecessor, the Midlands Engine Investment Fund.

The debut fund has helped fund 440 smaller businesses in the West Midlands since it was launched in 2017.

Three fund managers, BCRS Business Loans, Frontier Development Capital, and Mercia Ventures, have been appointed to manage the fund in the West Midlands.

The breakdown sees BCRS Business Loans overseeing the smaller loans part of the fund (£25,000 to £100,000).

Frontier Development Capital will cater to larger loans (£100,000 to £2 million), with Mercia Ventures conferring equity deals up to £5 million.

Louis Taylor, chief executive officer of British Business Bank, said: "Small businesses are at the heart of The Midlands’ economy.

"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."

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."

The bank has planned a series of information roadshows aimed at engaging with smaller businesses including enterprise agencies, advisors, accountants, law firms, and more, starting from Monday, March 11 in Lincoln, with additional sessions held in Leicester, Wolverhampton, and Coventry.

For more details and application for funding, visit www.midlandsengineinvestmentfund.co.uk.