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 British Business Investments, a commercial subsidiary of the British Business Bank, launched the Regional Angels Programme, designed to help reduce regional imbalances in access to early stage equity finance for smaller businesses across the UK.
At Spending Review 2021, the government announced a £1.6bn commitment to a next generation of regional funds:
- £660m for the Northern Powerhouse Investment Fund, including an expansion into the North East of England
- £400m for the Midlands Engine Investment Fund
- £200m to provide a new fund for businesses in the South West of England, building on the Cornwall and Isles of Scilly Investment Fund.
- £150m to provide a new fund for Scottish businesses
- £130m to provide a new fund for Welsh businesses
- £70m to expand provision for businesses in Northern Ireland
Further information on these funds will follow in due course.
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 a second regional fund, the Midlands Engine Investment Fund (MEIF).
- The MEIF provides over £250m of investment to boost small and medium business (SME) growth in the Midlands and is a collaboration between the British Business Bank and ten Local Enterprise Partnerships (LEPs) in the West Midlands and East and South East Midlands.
- The MEIF provides commercially focussed finance through Small Business Loans, Debt Finance, Proof of concept and Equity Finance funds.
Cornwall and Isles of Scilly Fund (CIOSIF)
- The British Business Bank has established 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.
For further background, please read our Statement on Regional Funds.