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News British Business Bank to launch new investment funds across the Midlands and North of England Published: 21st June 2023 Share The Midlands Engine Investment Fund II (MEIF II) and Northern Powerhouse Investment Fund II are two of a series of new Nations and Regions Investment Funds being launched by the British Business Bank which will deliver a £1.6 billion commitment of new funding to drive sustainable economic growth. A £400m investment fund in the Midlands along with a £660 million investment fund in the North of England are on course to be launched early in 2024, to support the growth of small and medium-sized businesses across the respective regions. The Nations and Regions Investment Funds will increase the supply and diversity of early-stage finance for UK smaller businesses, providing finance to firms that might otherwise not receive investment and help to break down barriers in access to finance. The British Business Bank is responsible for administering the Nations and Regions Investment Funds on behalf of the UK government. Investment funds are being established in areas not currently served by the Bank’s existing regional funding programme before launching follow-on investment funds in existing fund areas. MEIF II will enhance the existing Midlands Engine Investment Fund which has been in operation since 2017, and has helped smaller businesses overcome challenges during the pandemic, supported regional economic growth and highlighted the region’s reputation for innovation.Since its inception, MEIF has invested more than £200m into the Midlands, supported the creation of more than 2,370 jobs across 595 Midlands businesses, and unlocked £301m of private sector co-investment. Ken Cooper (pictured), Managing Director, Venture Solutions, at the British Business Bank, said: “This £400m commitment to the Midlands Engine Investment Fund II builds on the success of the first Midlands Engine Investment Fund, which has already supported nearly 600 innovative and ambitious businesses to access the funding they needed to grow. “The new fund will further develop the region’s economic prospects through an increase in the supply and diversity of early-stage finance for small businesses, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance.” The Northern Powerhouse Investment Fund II will offer a range of commercial finance options with loans from £25,000 to £2 million and equity investment up to £5 million. The new fund will cover the entire North of England including Greater Manchester, Liverpool City Region, Lancashire, Yorkshire & the Humber, Cheshire & Warrington, Cumbria, County Durham, Tyne & Wear, and Northumberland. The fund will address an identified funding gap in the North of England and further develop the regional investment funds already being delivered by the British Business Bank through the Northern Powerhouse (NPIF), Midlands Engine (MEIF) and Cornwall and Isles of Scilly (CIoSIF) Investment Funds. Ken Cooper commented: “The launch of the Northern Powerhouse Investment Fund II builds on the success of its predecessor. It will further increase the supply and diversity of early-stage finance for smaller businesses in the region, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance. “The first Northern Powerhouse Investment Fund has facilitated the investment of more than £1 billion into northern businesses since it launched, and has been instrumental in the creation of thousands of new jobs and opportunities. We know that the levels of private debt lending and equity investment in the North of England remain below expectations given the region’s share of the UK’s smaller business population and that is something this next generation of the fund will continue to address by backing ambitious businesses that will drive sustainable economic growth.” Both new investment funds will operate across three tiers: smaller loans (£25k-£100k), debt (£100k-£2m) and equity (up to £5m). Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories NewsToyota cuts 2026 global EV output plans by a third NewsVan market ends summer with a return to growth NewsAugust new car market holds steady