The British Business Bank has launched the Midlands Engine Investment Fund II with aims to “transform the finance landscape for smaller businesses in the Midlands”.

The £400m pot is for small and medium sized businesses to apply and is up from the £300m MEIF fund launched seven years ago.

Since 2017 the MEIF has supported 739 businesses and this latest round of investment proposes to help hundreds more.

Louis Taylor, Chief Executive Officer, British Business Bank said:

“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.”

Five fund managers have been appointed to managed the fund, which are BCRS Business Loans and First Enterprise (£25,000 to £100,000 loans), Frontier Development Capital and Maven Capital Partners (£100,000 to £2 million) and Mercia Ventures will manage equity deals (up to £5 million).

Following the launch, the British Business Bank will be hosting a series of roadshow events across the Midlands (Leicester on the 12th March) providing an opportunity to meet fund managers in person and to find out more about the fund and how to apply.