Good news for Tees Valley business owners looking for funding and for those seeking grant assistance for capital projects…
At the start of next month, The Northern Powerhouse Investment Funds will be announced – the formal launch date is 3 March. Some details have been announced early and more information will be available at www.npif.co.uk.
A brief summary of what we know already is as follows:
- Equity fund: £50,000 to £2m for businesses with ambitious plans or large start ups with high growth potential
- Business loans: £100,000 to £750,000 for early stage or more established businesses that can demonstrate growth potential
- Microfinance: £25,000 to £100,000 for businesses with working capital needs.
If you are looking to fund expansion projects, buy new commercial premises or machinery, hire a new team or plan to export, then these funds should be part of your planning in addition to speaking to your existing bank or other funders.
Remember these apply to those in the Tees Valley area and Yorkshire – not for businesses that fall outside of the Teesside LEP area.
If you have any doubts or are unsure whether you apply, please contact Steve Plaskitt.
A new Capital Grant Scheme has been announced, which is similar to the previous Lets Grow fund (which has now ended), but with the benefit of no fees payable.
The scheme can be broken down into three levels:
- £500k and over: a Business Plan is required to support the grant application. The applicant must also complete an Expression of Interest form and then the full application form (with appendices) if they are successful.
- £50,000 – £499,999: the rules for this are the same as above but no business plan is required (and there are still no fees!).
- £10,000 – £49,999: single stage application. The panel meets at least once a month with light touch appraisal by the BE Group. The grant can be offered immediately.
For grants of £50,000 or more, the panel meets bi-monthly with a ‘light touch’ appraisal and full scale Due Diligence if the grant is successful. The eligibility for the Capital Grant Scheme is very similar to that of the Lets Grow Fund (SME/large company looking for CAPEX and to safeguard/create jobs etc), but the capital thresholds are now as follows:
- Large – 25%
- Medium – 35%
- Small – 45%
More details will be available as soon as we get them.
The usual rules around Additionality and State Aid apply.
If you would like to learn more, please contact Steve Plaskitt.