Black Country businesses have an opportunity to access finance to grow and create jobs as part of a new £56 million Mezzanine Fund.
The fund will be the largest individual growth capital fund for small and medium sized businesses (SMEs) in the West Midlands.
Businesses will be able to apply for mezzanine loans – an innovative financial tool, between traditional debt and equity, which avoids part ownership by investors – of between £250,000 and £2 million to fund development and growth plans. Typical investments are expected to be around £1 million.
The £56 million fund is a public and private sector partnership between the Black Country LEP, Greater Birmingham & Solihull LEP (GBSLEP) and the West Midlands Pension Fund.
Paul Brown, Black Country LEP Board Lead on Access to Finance, said, "The Mezzanine Fund is important for SMEs in the Black Country and the region as it fills a gap in the market. It is an innovative solution for businesses, which need funds quickly or have less security to offer traditional funders.
"It demonstrates the partnership approach between the two LEPs, which have increased the fund by allocating some of their Growing Places funding to the initial allocation from the Regional Growth Fund.”
The fund will run until March 2019.
For further information, see www.financebirmingham.com