£56 million available across Greater Birmingham, Solihull and Black Country.
Businesses across Greater Birmingham, Solihull and the Black Country have an opportunity to access finance to grow and create jobs as part of a £56 million Mezzanine Fund launched today. The fund will be the largest individual growth capital fund for small to medium sized businesses (SMEs) in the West Midlands.
Managed by Finance Birmingham, a growing provider of growth capital, the fund is expected to help more than 40 businesses and create or safeguard 5,000 jobs across the region over the next five years.
The £56million fund is the a result of a ground-breaking public and private sector partnership between the Greater Birmingham & Solihull Local Enterprise Partnership (GBSLEP), the Black Country LEP and the West Midlands Pension Fund. In addition to funding from the Government’s Regional Growth Fund, cash has been added from the two LEPs from their Growing Places allocations.
Businesses will be able to apply for loans of between £250,000 and £2million to fund development and growth plans. Typical investments are expected to be around £1million. The funds will be given as mezzanine loans – an innovative finance, which sits between traditional debt and equity and avoids part ownership by investors. This type of funding is in short supply in the region and provides a solution for businesses, which need funds quickly or have less security to offer traditional funders, despite performing well. Finance Birmingham’s Mezzanine Fund will run from May 2014 to March 2019.
Finance Birmingham is calling for businesses with ambition and a viable plan for growth to get in touch to talk about how they can help make their plans a reality. All sectors and all uses of funds will be considered.
Sir Albert Bore, Leader of Birmingham City Council, said: “This fund demonstrates how public and private funds can be structured and leveraged to create a dynamic resource for growing businesses across the West Midlands. Our region is home to a growing and diverse range of entrepreneurs who, with the right support and backing, can create jobs and boost the local economy. The fund also provides a model for those in other parts of the UK, on how public and private partners can work together to address some of the biggest issues facing business growth – in this case, that is much needed funding.”
Pat Hanlon, GBSLEP Board Director, added: “The Mezzanine Fund is an important step forward for businesses across Greater Birmingham, Solihull and the Black Country as it not only fills a gap in the market but also adds to the suite of funds being managed by Finance Birmingham and other providers. This shows good collaboration between the two LEPs and the private sector, leveraging in funding way beyond the initial allocation from the Regional Growth Fund.
For further information about the funding available and to apply, visit www.financebirmingham.com, or call a member of the Finance Birmingham team on 0121 233 4903.
