£64.8 million invested into region's businesses

The fund, which was launched by the Government’s British Business Bank in 2017 to support small businesses in the Midlands, has helped to create 629 jobs, with 37 per cent paying above the UK upper quartile salary of £36,500 a year.

A report has found that the reasons for setting up the MEIF remain robust and highly relevant, spotlighting its impact in improving the delivery of equity finance in the Midlands after supporting 20 per cent of all equity deals in the region.

Ninety per cent of researched investee businesses confirmed that the additional equity funding they raised was either ‘entirely’ or ‘largely’ attributable to the MEIF.

Sixty per cent of investee businesses report increased turnover and 68 per cent of businesses had used investment to increase skills in their workforces.

Across debt and equity deals, 37 per cent of businesses stated that that they would either ‘probably not’ or ‘definitely not’ have secured finance without the fund.

The MEIF is continuing to invest via its seven fund managers throughout the Covid-19 outbreak. A Black Country-based designer and manufacturer of power supply units and battery charging systems is one of the latest businesses to secure a funding boost.

Positive

PSU Designs, which has a large design and manufacturing facility in West Bromwich, secured an £85,000 investment from BCRS Business Loans via the MEIF in conjunction with the Coronavirus Business Interruption Loan Scheme.

Patrick Magee, chief commercial officer at the British Business Bank, said: “The last few months have not been easy for small businesses in the UK. This includes the Midlands, where the British Business Bank has already identified a gap in the provision of SME finance. This new report, however, reveals that through the MEIF we are making a positive difference, with the region’s businesses accessing investment to develop innovative products, hire and upskill staff, and most importantly grow.

“The MEIF is key to driving forward the Midlands Engine economy. We are committed to building on the Fund’s progress and sustaining strong levels of support; the Bank is also operating a range of other initiatives to enable businesses to access finance at this time.”

Jon Corbett, chair of the MEIF's strategic oversight board, said: “Through our seven fund managers, a strong network of LEPs and intermediaries, we continue to foster a real sense of regional collaboration. This has been pivotal to the impact the Fund has made across the Midlands, it will continue to play an important role as the MEIF remains very much open for investment during these unprecedented times.”