New £140m fund to unlock SME growth in East of England
A new £140m Fund designed to support the growth of small and medium sized businesses in the East of England, has been launched today by the British Business Bank.
The launch of the East of England Investment Fund means the British Business Bank is now delivering targeted finance across every UK nation and region outside London.
This supports the government’s plan for growth in every postcode by helping businesses access finance close to home. By backing ambitious smaller businesses, the fund aims to support innovation, create jobs and stimulate sustained economic growth in the region.
Covering Essex, Suffolk, Hertfordshire, Norfolk and Cambridgeshire , the fund will provide much-needed access to finance for small and medium-sized businesses, offering loans from £25,000 to £2m and equity investments of up to £5m to help businesses start, scale and grow.
The East of England is home to 15% of the UK’s university spinout businesses, yet the region only received 9% of the UK’s total equity investment by value last year. The launch of the Fund will help to ensure the bridge between academic innovation and market deployment is adequately supported in the region
David Hourican, incoming interim chief executive officer of the British Business Bank, said: “The East of England is home to some of the UK’s most innovative and enterprising businesses, from world leading life sciences to advanced manufacturing and agri-tech. The launch of the East of England Investment Fund will play a crucial role in stimulating growth throughout the region by ensuring its businesses have access to the finance they need and deserve.”
Science, Innovation and Investment minister, Chris McDonald, said: “The East of England is home to small and medium sized businesses that are locally significant and internationally competitive. Many of these are in sectors such as life sciences, technology and clean energy that are growing quickly.
“These businesses need financial support to grow and take advantage of new market opportunities, but I know from my own experience that it isn’t easy if you are located outside of London.
“That’s why the British Business Bank is creating a new fund to support business in this region, sitting alongside targeted finance funds for every part of the UK. This is all part of the prime minister’s ambition to make sure that economic growth happens in every postcode, so that everyone in the country has the opportunity to benefit.”
The East of England Investment Fund will be managed by two fund managers appointed by the British Business Bank. Eastmeare, which is part of Beechbrook LLP and Mercia Ventures. which is part of Mercia Asset Management PLC. Eastmeare will manage the debt finance part of the fund, while Mercia Ventures will manage the equity investment part of the fund.