New £8m business fund to help East Midlands companies grow 

Firms across the East Midlands will be able to access grants to invest in new equipment, technology and energy-saving measures through a new £8.1 million business fund. 

Mayor of the East Midlands, Claire Ward has committed the funding to help businesses across Derby, Derbyshire, Nottingham and Nottinghamshire invest, grow and become more productive over the next four years. 

Over the lifetime of the programme, the Business Investment Fund is expected to support about 500 businesses and unlock £19m in additional investment from businesses. 

Mayor Claire said: “Businesses across the East Midlands are navigating an increasingly challenging and uncertain economic climate. While many have ambitious plans to grow, improve productivity and become more competitive, the risks and costs associated with investing can often hold them back. 

“This fund is designed to help make that investment less risky, giving businesses the confidence to invest in the new equipment, technology and energy-saving measures that will strengthen their productivity, resilience and long-term competitiveness. 

“By supporting businesses now, we can help create and safeguard jobs, unlock further private sector investment and build a stronger, more resilient economy for the East Midlands.” 

Business fund

The programme will have two funding strands and will be aimed at small and medium-sized enterprises (SMEs).  

The Business Growth and Productivity Grant will support businesses to invest in machinery, equipment, technology, innovation and expansion projects. 

The Business Energy Saving Grant will help businesses invest in energy efficiency measures and lower-carbon technologies, helping them reduce energy use and cut costs. 

Businesses receiving grants will also be connected to wider advice and support services, helping them get the most from their investment and plan for longer-term growth. 

Improving productivity

The business fund investment is expected to help businesses improve productivity, create and safeguard jobs, become more innovative and reduce their exposure to rising costs – supporting a stronger and more resilient regional economy. 

The fund is expected to launch late in 2026 and will use existing business support channels, including online applications through the Growth Hub website, and will connect businesses with other support available across the region, including Scale Up – Business Support, Start and Sustain and the Enhanced Growth Hub. 

The Business Investment Fund is part of the East Midlands Combined County Authority’s £107m Local Growth Fund, which is supporting economic growth and investment across the East Midlands. 

It is focused on five areas designed to tackle barriers to growth and create new opportunities across the region: 

• Opportunity Escalator – helping people access employment and skills pathways that support growth; 
• Business Growth and Investment – supporting businesses, investment and boosting tourism; 
• Cluster Development and Innovation – strengthening priority sectors and the region’s wider innovation ecosystem; 
• Strategic Development – supporting key sites, infrastructure and regeneration opportunities; 
• Thriving Places – investing in digital connectivity, regeneration of high streets, rural areas, and community energy. 

Together, these investments will support businesses, communities and places across the region, helping to create the conditions for sustainable and inclusive growth and more opportunities for local people.