A Birmingham-based machining company has secured a £400,000 loan to help safeguard its 65 employees as well as creating 10 full-time new jobs and apprentices over the next two to three years.

AE Aerospace secured the finance from the Midlands Engine Investment Fund (MEIF) - provided by the FSE Group, Debt Finance Fund and backed by the Coronavirus Business Interruption Loan Scheme (CBILS).

AE Aerospace is a leading provider of engineered solutions and manufacturing within the aerospace, marine, civil and defence industries. The business manufactures low to medium volume components for prototype through to current aircraft, including both spares and legacy parts.

The funding will also allow the business to continue its growth, developing value added solutions for UK and export markets. The company’s components are used on platforms primarily for civil aerospace projects including Airbus A220, A320 and A350 as well as some defence platforms.

Peter Bruch, AE Aerospace managing director, said: “Covid-19 has had an impact on many UK businesses during the past year. This funding will enable us to maintain our current workforce, putting the company in a strong position to fulfil its growth plans and create 10 new full-time jobs in the coming years.

“Our thanks to Kerry Haughton, the FSE Group’s investment manager, who guided us through the funding process to secure the loan, assisting the business to achieve its aims.”

The UK aerospace industry is worth £20 billion providing a range of new contract opportunities for AE Aerospace.

Ms Haughton said: “AE Aerospace has a strong management team offering a broad range of engineering solutions and strong customer relationships. The manufacturing industry is a key growth sector for the West Midlands area and the future job creation will have a positive impact on the local economy, further strengthening the future of the business.”

Ryan Cartwright, senior manager at the British Business Bank, said: “This MEIF funding will support AE Aerospace as it navigates the impact of Covid-19, while also maintaining its growth, with new jobs in the pipeline. We encourage other businesses in the Midlands to consider the MEIF as a source of funding for growth.”

Tim Pile, chair of Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) said: “To support the local and national recovery from Covid-19, it is vital that businesses like AE Aerospace receive funding to safeguard as well as create jobs and apprenticeship opportunities for local people.

“Taking into consideration the impact of Covid-19 on the aerospace industry, it is encouraging to see that this business wants to grow and strengthen this sector in our region. This type of investment combined with our targeted interventions is helping to deliver inclusive economic growth.

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

The FSE Group, MEIF Debt Finance Fund provides loans between £100,000 and £1.5 million to help growing SMEs across the region.