East of England Investment Fund opens with £25k–£2m loans

Where is the fund available?

The British Business Bank says the fund covers smaller businesses throughout the East of England, including rural, coastal and urban communities. The launch announcement specifically names Essex, Suffolk, Hertfordshire, Norfolk and Cambridgeshire.

The two finance routes

Debt is managed by Eastmeare, part of Beechbrook, while Mercia Ventures manages the equity route. Applications are made through the relevant fund manager after checking eligibility.

What could the money be used for?

The official aim is to help smaller businesses start, scale and grow, with an emphasis on innovation, jobs and sustainable economic growth. The right use will depend on the finance route, but examples could include equipment, premises, product development, recruitment, working capital linked to growth or entry into a new market.

Five questions before approaching a fund manager

1. What exactly will the money pay for? Replace “growth” with a costed list and timetable.
2. What changes commercially? Show the sales, capacity, margin or market opportunity created.
3. How is the risk managed? Include downside assumptions rather than only a best-case forecast.
4. Can the business service debt? For a loan, test repayments against a cautious cash-flow forecast.
5. Are you comfortable with dilution? For equity, understand the stake, decision rights and future funding implications.

What should an application pack contain?

Prepare recent accounts or management figures, a current cash-flow forecast, the amount required, the purpose of the finance, ownership details and a short business plan. Make the first page easy to understand: what the business does, who buys, why the opportunity exists, how much is needed and what the funding unlocks.