Research showed that a new source of funding for viable businesses, unable to access all the capital they needed in order to grow and expand, was vital if the economy on Merseyside was to improve.

The MSIF was established to provide a new source of funding for viable businesses that were unable to access the capital they needed from traditional sources. Many of these businesses are start-ups, some needing finance to grow, and others needing finance to be saved from closure.

The MSIF provides businesses with loans (not grants) and equity packages (where a stake is taken in the company) from approximately 4,300 up to 4.3 million euros. All kinds of businesses can benefit from the funding but they must be able to demonstrate through a business plan that they are commercially viable.

The Small Firms Fund provides loans (not grants) of between 4,300 euros and 215,000 euros. Sole traders, partnerships and limited companies can apply for a loan to help them get started or expand.

For investments over 215,000 euros, businesses can appeal to two funds. The MSIF Venture Fund provides equity investments of up to 2.9 million euros, which involve taking a minority stake in the business. The MSIF Mezzanine Fund provides loans between 215,000 euros and 1.4 million euros. This finance combines the features of traditional bank lending with equity investments.

Alongside the finance, the MSIF provides a range of services to support businesses through its Business Owners Support Services. These include events, networking, public relations and promotion, mentoring and a professional buying service.

From its creation in 1996 to 1 January 2005, the MSIF has:

The MSIF has been and still is so successful that it has been replicated in other Objective 1 regions in the United Kingdom, e.g. South Yorkshire, Cornwall and Wales.

MSIF's funds consist of European Community resources through the Merseyside Objective One programme and private sector investment from Barclays, the Merseyside Pension Fund and the Cooperative Bank.

The total cost of the project was 137.6 million euros.

The European Development Fund of the European Commission provided 61.9 million euros.

MSIF
Phone: +44 151 236 4040
info@msif.co.uk

01/01/1996

case

Urban Policy > Economy knowledge & employment > Urban economy

Business support