The British Business Bank launched the £140m East of England Investment Fund on 23 September. It offers loans from £25,000 to £2m and equity investment of up to £5m. It is for small and medium-sized businesses in Essex, Suffolk, Hertfordshire, Norfolk and Cambridgeshire.
01What the East of England Investment Fund offers
The fund has two parts. One offers loans. The other offers equity, which means an investor buys a share of your business.
Two fund managers appointed by the British Business Bank run the fund. One manages the loans and the other manages the equity.
With this launch, the British Business Bank says it now runs targeted finance in every UK nation and region outside London.
02Why the region was chosen
According to the British Business Bank, the East of England is home to 15% of the UK's university spinout businesses. Yet the region received only 9% of UK equity investment by value last year.
The fund is meant to help close that gap. The Bank says it will help businesses in the region start, scale and grow.
03Who should look at it
If your business is based in one of the five counties and needs £25,000 or more, this fund is worth a look. The loans run up to £2m. Loans of that size usually suit a business that is already trading and has a clear plan.
If you are just starting out and need less, a different route may fit better. Start Up Loans lend £500 to £25,000 per founder, as a personal loan.
The British Business Bank will run a roadshow for finance intermediaries across the region from 20 to 22 October.
04What to do next
A regional fund is one option, not the only one. It helps to compare it with other business growth finance before you apply, so the loan matches what you need it to do.
The fund follows the £210m South East Investment Fund, which we covered earlier this month: British Business Bank opens a £210m South East Investment Fund.
