Funding Assistance For Businesses Within The Yorkshire Region - Yorkshire Business Grants

May 2010

In addition to raising business funding, we also specialise in obtaining business grants and other assistance for our clients. The following is a summary of the main schemes currently available in the Yorkshire region. Please note, that we update this section regularly to ensure that all schemes are current.

Strategic Business Review (SBR)

• Strategic review and implementation plan for businesses committed to growth & employment creation.
• Established businesses (normally 3+ years) and 4 or more employees
• All industries in the Yorkshire region.
• Up to £3,000 fully funded by Business Link

BusinessLink High Growth Grants

Grants are available for

• Businesses employing 4 full time employees within 12 months
• Pre-start businesses included (3 months prior to trading)
• Businesses anywhere within the Yorkshire region (now including retail)
• Funding up to £5,000 (£2K fully funded; matched funding over this amount)
• Covering consultancy fees re business planning, mentoring, funding, marketing, personnel etc.

Connect Yorkshire - Growth Assistance

Available under their 'Understanding Finance for Business' program

• Fully funded
• Covers consultancy fees/assistance re business planning, fund-raising (debt & equity), mentoring etc
• Pre-start's and established businesses included
• All industries (except agriculture & some property)

Financial Health Check

Businesses with five or more employees/direct associates are likely to be eligible for this service which, in essence, provides a thorough financial business review and advice on funding options.

This service has a value of £1,500 plus VAT which is fully funded by Business Link.

Rural Enterprise Grants

The following is a summary of the three grant schemes currently available via BusinessLink / Yorkshire Forward:

1. Rural Retail Grant

• For rural shops, pubs, cafe's etc
• Grants of up to 70%
• Max grant - £10K (may have been increased recently)
• For capital expenditure
• Support diversification/employment creation

2. Rural Business Support Programme (RBSP)

• Grants of up to 50%
• Max grant - £25K
• Aims to stimulate enterprise
• Simpler application processn - administered by Business Link
• Mentors and other forms of business support will be encouraged to accompany the start up grant

3. Rural Enterprise Investment Programme (REIP)

Available for Micro Business creation and development (where a micro business is less than 10 employees)

• Min - £25K and Max - £300K
• Up to 50%
• More complicated to apply for - administered by Yorkshire Forward
• Spending can be spread over 3 years
• 4/6 months lead in time for approval
• Can be used for a number of purposes, including Capital Expenditure and Asset purchase

Proposals (which need to be very comprehensive) must demonstrate one or more of the following key attributes

• -Promote innovation
• -Be located within a 'rural' postcode
• -Demonstrate good / high growth potential
• -Promote collaborative actions between businesses and through supply chains
• -Deliver multiplier effects, such as wider public 'goods' and benefits
• -Provide high quality employment opportunities
• -Develop a skilled and adaptable rural workforce

Grants for Business Investment (GBI)

• Available for businesses of all sizes for projects in assisted areas
• Most manufacturing & service industries qualify - Must supply a national market
• Available for business looking to:
  • Expand, modernise or reorganise an existing business
  • Upgrade a business by introducing technological or other innovative improvements into the business process
  • Enable a business to take the step from development to production.
• Successful applicants typically receive around 15% of a project's total eligible capital expenditure, but this can vary widely. Higher aid ceilings might be available for projects carried out by small to medium-sized businesses.
• Amounts up to £2M are considered locally (higher amounts by BERR in London)

Research & Development Grants

There are a range of grants available from Yorkshire Forward as follows:

Export Funding

Offers grant support of around £5,000 (to be matched by the applicant) to help companies with anything from identifying and visiting potential markets to modifying their websites for international customers.

Other Smaller Schemes

Leadership & Management Fund

• Available for training and development - could be used for 'training' on funding, IT, marketing, general help and advice etc
• First £500 fully funded then further £1,000 match funded.

Innovation Fund

• Available from Yorkshire Fwd
• Designed to assist with design of new systems etc - 50% of cost

University Projects

£3K (100%) available to provide technical help and support by uni prof etc for design, innovation etc.

Finance Yorkshire

This newly formed organisation provide loans and equity funding for SME's unable to raise funds from traditional sources. They are a commercial fund targeted to provide a return to its investors and is looking to support businesses and proposals that are considered to be commercially viable.

Eligible Businesses:

• The business needs to be paying business rates within the Yorkshire and Humberside area, or relocating to the region.
• A new start or growing business, or a business with growth potential.
• A business unable to source its full funding requirement from the commercial market.
• Manufacturing or service businesses (some restrictions apply).

Loan Terms:

• Amounts - Early stage (trading <h;3 yrs): £15K to £50K; Established: £15K to £150K.
• No early repayment penalties.
• Monthly repayments of capital and interest with maximum repayment terms up to 5 years.
• Interest rate (gross) - 12% fixed, interest rate rebates may be available.