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Midlands Engine Investment Fund II commits over £1.3 million in small business loans to East and South East Midlands businesses

Press release 29 July 2024

Hannah Byrne and Daniel Byrne, co-owners of Knit Nottingham

Over £1.3 million in small business loans committed to East and South East Midlands businesses since the fund’s launch in February 2024.

The British Business Bank’s Midlands Engine Investment Fund II has agreed over £1.3 million in small business loans through appointed fund manager for the East and South East Midlands First Enterprise – Enterprise Loans.

The milestone comes as 16 small businesses across the East and South East Midlands have benefitted from small loans agreements since the fund launched earlier in the year.

The £400 million Midlands Engine Investment Fund II covers the whole of the Midlands and provides debt finance from £25,000 to £2 million and equity investment up to £5 million to help a range of small and medium sized businesses in the region to start up, scale up or stay ahead.

One business, Knit Nottingham, received £60,000 working with First Enterprise - Enterprise Loans. The multi-award winning independent yarn shop, located in the heart of Nottingham, applied for funding to help with purchase of the business from the previous owner for business expansion plans.

Founded in 2010, Knit Nottingham is a hub for knitting enthusiasts in the East Midlands. The shop gained fame after featuring on BBC’s Interior Design Masters and is known for its engaging workshops catering to all skill levels. With its rich local heritage, exceptional service, and vibrant online presence, Knit Nottingham continues to weave together a thriving community of crafters.

The funds have helped us achieve our dream of owning a small business that also serves as a community hub for fellow creatives. Balancing life with a two-year-old and work, we thought this would be impossible, but our Investment Manager at First Enterprise - Enterprise Loans made the daunting process easy to follow and kept us updated every step of the way. Hannah Byrne and Daniel Byrne Co-owners of Knit Nottingham,

The launch of the Midlands Engine Investment Fund II has been incredibly positive. We’ve seen a great response from businesses, and feedback from our appointed fund managers shows that the business owners in the Midlands are not only ready to grow their businesses - they’re excited by the prospect.

The British Business Bank plays an important role in powering up small businesses by aiding access to finance and lending option types. The response to the new fund has been brilliant and we look forward to supporting more businesses and entrepreneurs in the future.

Jody Tableporter Director, British Business Bank
To have already distributed over £1 million in small business loans in just over four months is a fantastic achievement, and shows the popularity and demand that exists for small business finance. First Enterprise - Enterprise Loans is proud to support small business owners with a range of small loan options. Our team of fund managers is here to help any business owner who is considering finance options. We want to see more people coming through the door and successfully qualifying for funding, where they might previously have been refused. Daniel Carrico Executive Director, First Enterprise - Enterprise Loans

The Midlands Engine Investment Fund II drives sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for smaller businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Further Information

If you are a journalist and have a media enquiry, please contact mediaenquiries@british-business-bank.co.uk.

Notes to editors

About the Midlands Engine Investment Fund II

Operated by the British Business Bank, the Midlands Engine Investment Fund II provides a mix of debt and equity funding. The Midlands Engine Investment Fund II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the various support and funding organisations from UK Government as well as local intermediaries such as accountants, fund managers and banks, to support the Midlands’ smaller businesses at all stages of their development.

The funds in which the Midlands Engine Investment Fund II invests are open to businesses with material operations, or planning to open material operations, in all areas of the Midlands. Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).

www.midlandsengineinvestmentfund.co.uk

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