The Midlands Engine Investment Fund has appointed FSE Group to manage a new £40 million funding pot for small businesses across the region.
The launch of this latest debt finance brings to eight the number of funds which make up the MEIF.
Appointed to address demand across both the East and West Midlands for alternative debt finance options, FSE will manage the fund which will invest between £100,000 and £1.5 million.
The MEIF invests up to £2 million to help SMEs grow and develop and is owned by the British Business Bank, the UK's national economic development bank.
Robert Spencer, executive chairman of Surrey-based FSE Group, said: "We are delighted to be appointed fund manager for this new £40 million debt fund and join the existing fund managers in providing alternative finance options from the MEIF.
"FSE has been funding and supporting growth SMEs for over 15 years and we look forward to bringing our characteristic flexible more-than-money approach to the Midlands region."
Robert Jenrick MP, local government secretary and Midlands Engine Champion, said: "The region is home to some of the world's most innovative businesses and dynamic entrepreneurs.
"Thanks to this further £40 million being made available through the Midlands Engine Investment Fund, more businesses in the Midlands will be able to secure the backing they need to develop their ideas, grow their companies and create more well-paid local jobs.
"Opening up further investment opportunities for local businesses is just one of the ways that this new government is putting the Midlands at the heart of our plans to level up all parts of the country and create prosperous communities."
Patrick Magee, chief commercial officer at the British Business Bank, added: "Since launch, the MEIF has committed to improving the regional finance landscape for small businesses.
"We have made strong progress, providing over 225 businesses with finance and helping them achieve new growth.
"Adding a new fund manager will help us continue delivering on this mission as we help to support driving the Midlands Engine forward.
"The FSE Group has an expert team and is well equipped to not only invest in businesses, but work with them in the long-term to help them create jobs, enter new markets and bolster the regional economy."
