The British Business Bank aims to make finance markets work better for smaller businesses across the whole of the UK, in line with the Government’s aim of boosting long-term growth in the regions and narrowing the historic North-South funding gap.
In addition to our three regional funds, in 2018 we will be creating and delivering a commercial angel investment programme to support developing clusters of business angels outside London. This was announced at Budget 2017 on 22 November. Our research has clearly demonstrated an imbalance across regions, most markedly in equity finance, and this is one step to help tackle that imbalance.
Northern Powerhouse Investment Fund (NPIF)
- The £400m Northern Powerhouse Investment Fund, launched on 22 February 2017, supports smaller businesses across the Northern Powerhouse region.
- NPIF provides funding to fund managers who offer microfinance (£25,000 – £100,000), business loans (£100,000 – £750,000) and equity finance (up to £2m).
Midlands Engine Investment Fund (MEIF)
- The British Business Bank is also working alongside LEPS in the Midlands to deliver the Investment Strategy for this second regional fund, the Midlands Engine Investment Fund (MEIF). Following NPIF, it’s expected the first investments from this £250m fund will be made in 2017.
- MEIF aims to boost the region’s economy and support the growth ambitions of its 780,000 smaller businesses. The new fund will bring together legacy funding from existing programmes, new funding from the British Business Bank and new European funding.
Cornwall and Isles of Scilly Fund (CIOSIF)
- The British Business Bank is establishing the Cornwall & Isles of Scilly Investment Fund in partnership with the Cornwall & Isles of Scilly LEP. The £40m investment Fund will support access to finance where barriers exist for SMEs and seek to address an equity gap in start-up, early stage and development capital.
- We are currently running an OJEU procurement process to appoint Fund Managers, details of which are available at the link below.
For further background, please read our Statement on Regional Funds.