£200m South West Investment Fund to empowers small businesses

The British Business Bank has launched a £200m South West Investment Fund aimed at fostering growth and prosperity for small businesses across the South West of England.

The South West Investment Fund (SWIF) will provide much-needed funding to small and medium businesses across the whole South West region, covering Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset, and Wiltshire.

The fund will increase the supply and diversity of early-stage finance for new and growing smaller businesses for various purposes, such as expansion, product or service innovation, and new processes, skills or capital equipment. It will offer a range of commercial finance options with loans from £25,000 to £2 million and equity investment up to £5 million.

SWIF is the first in a series of six new Nations and Regions Investment Funds being launched by the British Business Bank, the government-owned business development bank. A total of £1.6 billion has been committed to the new funds to drive sustainable economic growth, which was first announced by the government in the 2021 Spending Review.

Chief Secretary to the Treasury, The Rt Hon John Glen MP and Member of Parliament for Salisbury said: “The South West is home to some of the most creative, innovative and exciting businesses this country has to offer. This fund will deliver vital investment to nourish that potential, building on over £300 million of levelling up funding to grow the local economy and create well-paid jobs across the region.”

Louis Taylor, Chief Executive of the British Business Bank, added: "The launch of the South West Investment Fund marks an important milestone in our mission to support business growth across the UK. By identifying and addressing funding gaps in the South West, we aim to empower local businesses and unlock their true potential. This initiative will play a crucial role in catalysing economic growth, creating jobs, and fostering innovation in the region."

The £200m fund has been warmly welcomed by South West business leaders.

Stuart Elford, Chief Executive of Devon and Plymouth Chamber of Commerce, said: “We know there is a real need to increase the supply and diversity of early-stage finance to SMEs across Devon and Plymouth and this new fund from the British Business Bank will help break down barriers to finance and create a level playing field for all entrepreneurs. It’s great news.”

Paul Coles, Chief Executive of the South West Business Council, said: “This fund will provide much-needed investment in the region’s businesses, enabling them to thrive, expand, and contribute to the economic prosperity of the South West. We are confident it will drive sustainable economic growth and job creation.”