FDC marks £15m milestone in MEIF II loans for West Midlands SMEs

The loans have supported 35 businesses from a wide range of sectors, with funding commonly used to purchase new equipment or technology, to provide capital to take on bigger projects, to open a new site, or fund an acquisition or buy-out as part of a wider growth plan.

Andy Green, Fund Principal, MEIF II West Midlands of FDC, said the company was seeing strong demand from businesses as confidence had increased in recent months following a quiet period earlier in the year around the start of the Middle East conflict.

He added: “Economic conditions remain challenging but West Midlands businesses are a resilient bunch and there are plenty of ambitious owners who are keen to press ahead with their growth plans. The Midlands Engine Investment Fund II is here to support them and fill any gaps in funding provision.

“While the banks are actively lending, they do have strict credit policies and smaller firms in particular may fail to tick the right boxes. We can often help where the banks are unable to, or we can work alongside the banks to ‘top up’ any funding they provide.”

Over the past year the funding has helped craft brewery owner Dal Dhillon to launch Coventry’s first food hall, Elle’s, while in Sutton Coldfield it has enabled Silver Tree Bakery to open a new café and co-working space. It has also helped independent gym chain Fitness Worx to open new sites in Rugby and Solihull, and enabled Birmingham’s Attic Brew Co to acquire its site and safeguard its future.

Worcester-based software company Lean Transition Solutions is using the funding to incorporate AI into its products, while Geometric Manufacturing in Tewkesbury is investing in its factories, and in Telford it has enabled Different Dog to fit out a new kitchen to produce its ‘healthy’ dog food.  The funding is also enabling BAX Construction, the company behind the transformation of Wolverhampton’s Express & Star building, to take on bigger projects, and it has enabled Birmingham property management agency Fishers to make its first acquisition.

Andy Green added: “We are seeing the emergence of a new generation of West Midlands entrepreneurs and it’s great to be able to support them on their journey. In some cases, they come back for funding for their next project. By helping businesses to grow, the Midlands Engine Investment Fund II is also helping to create new jobs and support local economies throughout the region.”

David Tindall, Senior Investment Manager at the British Business Bank, said: “Reaching £15 million in lending through the fund is an important milestone and reflects the strength and ambition of the West Midlands small business community. Access to finance can make a real difference in helping businesses invest, grow and pursue new opportunities, particularly at a time when many are looking to build resilience and unlock the next stage of development.

“We are pleased to be supporting ambitious businesses across the region with the funding they need to turn their plans into reality. This milestone demonstrates the continued demand for flexible funding and the important role Midlands Engine Investment Fund II is playing in helping West Midlands businesses grow and contribute to the wider regional economy.”

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

The purpose of the Midlands Engine Investment Fund II is to drive 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.