The British Business Bank has just launched the first wave of its £250m Midlands Engine Investment Fund (MEIF) with £120m-worth of small business loans and debt finance on offer.

The aim of the funding is to provide support to the region’s small businesses, accelerate growth and promote job creation in line with the government’s Midlands Engine Strategy.

The MEIF is a collaboration between the British Business Bank, the Department for Business, Energy and Industrial Strategy, the Department for Communities and Local Government, and ten Local Enterprise Partnerships (LEPs) in the Midlands.

It brings together new and existing funding from central government, the European Regional Development Fund (ERDF), British Business Bank and European Investment Bank (EIB) and is designed to help smaller businesses achieve economic growth through enterprise by providing finance in the form of small business loans, debt finance, proof of concept and equity finance loans.

The first wave of funding is composed of two separate elements: £30m in small business loans worth between £25,000 and £150,000, and £90m of debt finance worth between £100,000 and £1.5m.

According to the MEIF’s website Sajid Javid, Secretary of State for communities said: “The Midlands Engine Investment Fund is a key part of our Midlands Engine Strategy to help create more jobs and boost skills in the region. This financial support will enable local businesses to grow, move in to new markets and boost productivity.

The launch of the funding coincides with the publication of a report by the British Business Bank on the state of the Midlands’ economy and funding landscape, entitled Spotlight: The Midlands Engine Investment Fund.

The report highlights opportunities for fast-growing businesses in the Midlands Engine area to reach their economic potential and summarises the region’s economic strengths.

It states that the Midlands’ economy composes 13 per cent of the UK’s economic output and that 14 per cent of all high-growth businesses are located in the region. The report also claims that five-year business survival rate is higher in the East and West Midlands than in London.

The £120m fund now available is part of a wider £250m commitment, with further funding due to be made available later this autumn.

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