BCRS Business Loans passes £5m in Midlands Engine Investment Fund II lending
Community lender BCRS Business Loans has passed £5m in lending for the British Business Bank’s Midlands Engine Investment Fund II since its launch, creating 237 new jobs across the West Midlands.
BCRS Business Loans has supported 82 businesses by delivering finance from the Midlands Engine Investment Fund II, which was launched in February 2024 by British Business Bank to drive sustainable economic growth.
Wolverhampton-based BCRS Business Loans has lent £5.2m in total, making £27.5m in economic impact to the region. With BCRS Business Loans focusing on firms under-represented in traditional lending, 21% of the loans were to ethnic led businesses, while 15% were to female led companies
Among those to benefit is Ace Embroidery, which used the funding to move to a greener, more fit for purpose warehouse unit in Cradley Heath, Sandwell, that will support the long-term growth of the business.
Ace Embroidery managing director Mathew Smart said: “Moving to the new site has enabled us to focus better on what we offer and restructure and reset the business. It will help us to modernise operations, take on new customers and expand into new markets.
“The new warehouse has a better location, size and layout. Having one level and a mezzanine floor makes it far easier to manage jobs and communicate with the team.
“The site also has better staff facilities and is more energy efficient, which has helped us to cut down on running costs.
“Working with BCRS to get the funding was super easy, and business development manager Lynn Wyke was very helpful throughout the process.”
Stephen Deakin, chief executive at BCRS Business Loans, said: “The team at BCRS Business Loans are pleased to reach the £5m landmark as we build on our strong heritage of delivering British Business Bank funds to ensure no viable business goes unsupported.
“Helping small businesses to secure funding to start up, scale up and stay ahead is central to our work, so we are delighted to distribute loans on behalf of the Midlands Engine Investment Fund II to support our economic future, especially in regions and among social groups where the funds are needed most.”
The £400m Midlands Engine Investment Fund II covers the whole of the Midlands, providing debt finance from £25,000 to £2m and equity investment up to £5m to help small and medium sized businesses in the region to start up, scale up or stay ahead.
BCRS Business Loans is delivering smaller loans in the West Midlands from £25,000 to £100,000, with Frontier Development Capital offering debt finance from £100,000 to £2m and Mercia Ventures delivering equity investment up to £5m.
David Tindall, senior investment manager at the British Business Bank, said: “Strong demand for funding through BCRS Business Loans highlights the vital role Midlands Engine Investment Fund II plays in helping high-growth businesses access the funding needed to achieve their ambitions.
“By ensuring wider access to lending, the fund continues to support more entrepreneurs and businesses in driving economic growth across the Midlands.”
In the last financial year BCRS Business Loans generated more than £53m in economic growth across the West Midlands, surrounding areas and Wales through funding to underserved small and medium-sized enterprises.
BCRS is an active member of Responsible Finance, the trade association for the responsible finance industry which provides finance and support to help enterprises and individuals develop and create wealth including support to disadvantaged communities.