Session 1 Financial Support for SME’s
Small Loans for Business Gary Pennington Finance Development Manager Economic Development
What ? • Small Loans for Business: Enterprise funding of between £3,000 and £50,000 to entrepreneurs from disadvantaged groups or communities. • Support is also offered alongside the loan with flexible repayment schedules. The loans are at a commercial rate of interest, and have a 5 year maximum term.
Why ? • Market imperfections place barriers to entrepreneurship in disadvantaged communities. • The Government’s Enterprise Strategy commitment is to provide access to finance for members of such communities. • Loans can provide a mechanism that actually provides a bridge to commercial lenders.
Who? • Entrepreneurs & SME’s particularly those from disadvantaged areas and communities excluded from the mainstream finance. • Businesses must be viable and unable to secure all their finance needs from mainstream sources. • The loan is for businesses aiming to start up, develop or expand, and is specifically targeted at women, under represented black and minority ethnic groups.
Case Study: NICKI B Children’s Clothing, Cumbria “It was really straightforward to apply for the small business loan. The loan has helped us to invest in expanding the company. We’ve got big plans over the next few years and the loan will definitely help us to achieve the growth we anticipate.“ NICKI B
Where ? • Anywhere in the Northwest for Entrepreneurs and SMEs, including Social Enterprise.
Provider ? • Northwest Development Agency through Community Development Finance Institutions.
Process / Next Steps • Contact CDFI Partners on 0871 384 1021 • Or apply online at www.nwda.co.uk/finance • Decisions will usually be made within 20 working days of application.
When ? • CDFI’s will accept applications 365 days a year via our website.
FAQs? Q. Do I have to have been rejected by traditional lenders? Q. Are loans available in Manchester? Q. What if I have a poor credit history? Q. If I have received partial funding from a High Street Bank can I apply? Q. Why do I need a business plan?
Thank you for listening! We will update you on progress
www.nwda.co.uk/finance
Session 1 Financial Support for SME’s
Finance For Business: Northwest Venture Capital & Loan Fund Gary Pennington Finance Development Manager Economic Development
What ? • A €204 Venture Capital & Loan Fund • Loans of between £50,000 and £250,000. • Equity investment up to £2 million (twothirds public supplemented by a minimum one third private investment). • Mezzanine arrangements across the spectrum (a combination of debt and equity).
Why ? • A finance gap exists where viable businesses experience difficulties in accessing finance in the commercial market. • This gap occurs most acutely for businesses seeking finance up to £2 million.
Who? • Businesses looking to grow, whether it be a start-up, seeking seed money for proof of concept or more established business looking for equity finance to expand the scale of its operation. • Key Sectors will be targeted: Advanced Engineering & Materials; Biomedical; Business & Professional Services; Creative Digital Industries; Energy & Environmental Technologies and Food & Drink.
Where ? • SMEs based in the Northwest unable to raise finance on the commercial market but having viable business plans.
Provider ? • Northwest Development Agency through Northwest Venture Capital & Loan Fund
Process / Next Steps • Apply online at www.nwda.co.uk/finance • Decisions will usually be made within 20 working days for straight loan and within 40 working days for equity finance from a fully completed application being received. (both subject to satisfactory completion of due diligence).
FAQ • Q. When will this funding be available? • A. Transitional funding is available now, the €204m Fund is due to be launched early in 2009.
Thank you for listening! We will update you on progress
www.nwda.co.uk/finance
Session 1 Financial Support for SME’s
Finance for Business: Northwest Business Angels Gary Pennington Finance Development Manager Economic Development
What ? • Northwest Business Angels helps companies to become 'investment ready' by preparing them to meet with investors looking for young and dynamic businesses. • Arranges introductions to potential investors through real life ‘Dragons Den’ Investor Club meetings and on a dedicated website.
Why ? • In response to the lack of preparedness in SMEs widely reported by lenders and finance managers. • Over 25% of business fail to attract finance due to not being ‘investor ready’.
Who? • SMEs Seeking between £10k and £500k in return for an equity stake in their business. • The company should exhibit the ability for rapid growth. • Have an experienced management team, or the desire to build a successful team. • The business/proposition should be in a growing market with a clear strategy for long term expansion.
Where ?  Available to individuals starting up a Northwest based business, as well as SMEs already based in the Northwest.
Provider ? • Northwest Development Agency through Northwest Business Angels.
Case Study: Holiday Experts Ltd Lancashire £300,000 Investment in return for 50% Equity
“ We are grateful to Northwest Business Angels for the professional way that they helped us prepare our business case - but more than that, for the close personal relationship we developed with our adviser”. MIKE RUSSELL, MD Holiday Experts Ltd
Process / Next Steps • Apply online at www.nwda.co.uk/finance • NWBA Advisors will usually contact the entrepreneur within 4 working days of application.
When ? • NWBA will accept applications 365 days a year via our website.
FAQs? Q. How much does it cost? Q. Is the Northwest Business Angels service impartial and confidential? Q. How much money can I raise through Business Angels? Q. What do I have to do to obtain funding from investors?
Thank you for listening! We will update you on progress
www.nwda.co.uk/finance
Session 1 Financial Support for SME’s
Grant for Business Investment (GBI) Chris Greenhalgh Grants Strategy Manager
Who? For Small and Medium Sized Enterprises (SMEs) and large companies in the eligible sectors and in certain locations across the North West investing a minimum of £100,000 on fixed assets.
Where? Anywhere in the Northwest for SMEs Large company support limited to identified areas of high deprivation
Provider? Northwest Development Agency
Why ?  Grant for Business Investment seeks to address the current disparity in the economic performance of the English regions by promoting growth in disadvantaged areas and the wider region.  The support reflects the key role SMEs play in job creation, the generation of economic activity and the difficulties they face in the market place.
What? Grant for Business Investment provides a minimum grant of £10,000 and above to businesses to support capital investment or job creation projects that help the company expand, rationalise, modernise or diversify. Depending on the size of the company and the location of the project successful applicants can receive anything from 10% - 45% of a projects total eligible capital expenditure but support can vary depending on the need and quality of the project.
Example?  Electronics manufacturer in Wigan. The grant enabled the company to build more facilities and to bring in new more advanced technology. The company were able to invest in more efficient and advanced technology giving them the edge and making them more competitive. Grant award of £500,000 made in December 2006.  Case studies can be found on the Finance for Business website
Process / Next Steps Contact Finance for Business team at the North West Development Agency Apply online at www.nwda.co.uk/finance Decisions will usually be made within 30 working days, from a fully completed application being received.
When? No call dates for submitting applications. NWDA will accept applications 365 days a year via our website.
FAQs? My company employs 50 people in the NW and 300 in India aim I eligible? I am a spending £20,000 on capital equipment am I eligible? I am not creating or safeguarding any jobs am I eligible? Can relocation of equipment costs be included? I am able to secure bank finance but I would prefer a grant.
Find out more at:
www.nwda.co.uk/finance
Session 1 Financial Support for SME’s
Grant for Research & Development Chris Greenhalgh Grants Strategy Manager
Who? For Small and Medium Sized Enterprises (SMEs) With projects that contain technical & scientific risk
Where? Any where in the Northwest
Provider? Northwest Development Agency
Why ? Technical risk or scientific uncertainty acts as a barrier to investment Address market failure by public intervention By offering a grant towards the costs of carrying out the research and development work, the grant will encourage businesses to carry out projects that they would not necessarily undertake without the grant This will help lever in to these projects, finance from reluctant private investment sources to help fund the project. On completion, the grant will “ quality assure “ the project, which could make the applicant more investment ready
What? Finance to assist SMEs to develop and exploit new ideas Overcome technical barriers & scientific risk Increase business involvement in R&D activity Share the risk
What ?
Research Projects – Up to £100,000 grant. 60% support for SMEs with up to 50 employee’s
Micro Projects – Up to £20,000 grant. 45% support for SMEs with up to 10 employee’s
Development projects – Up to £250,000 grant. 35% support for SMEs with up to 250 employee’s
Exceptional development projects – Up to £500,000 grant. 35% support for SMEs with up to 250 employee’s
Example? Flowcrete based near Sandbach Identified a potential innovation in a novel & unique seamless flooring system for the construction industry Uncertainty around the technology prevented investment Used Grant for R&D to partly mitigate the risk Undertook a defined project of work Brought the innovation to market Which enabled the company to grow from a £1M to £42M turnover
Process / Next Steps Eligibility check & apply online at www.nwda.co.uk/finance Contact the Finance for Business team at the Northwest Development Agency for more details Decisions will usually be made within 60 days, from a fully completed application being received
When? There are no call dates for submitting your applications None competitive
FAQs?
Can we apply for funds to complete a partly completed project?
Can it support consortiums?
What if we do not own the IPR?
Can most of the project sub contracted?
Can we apply to the Carbon Trust as well?
Will the grant support content development for creative SMEs?
Can we also use Small Business Loans?
Can larger companies apply?
Find out more at:
www.nwda.co.uk/finance
Session 1 Financial Support for SME’s
Carbon Reduction Capital Purchase Awards
Part of: Improving Resource Efficiency Chris Greenhalgh Grants Strategy Manager
Who? For Small and Medium Sized Enterprises (SMEs) in eligible sectors For projects that can not be supported by the Carbon Trust Interest free loan scheme £50,000 – £200,000, are too small , have been rejected, have payback of longer than 4 years
Where? Any where in the Northwest
Provider? Northwest Development Agency Supported by ENWORKS
Why ? Mitigate future impact of climate change Support 60% national Co2 savings by 2050 Support the Regional Climate change Action Plan objectives to 2020. Support increased competitiveness – cost savings Encourage the development environmental policies
What? Product to encourage SMEs to reduce Co2 emissions For capital purchases, including installation costs that can demonstrate Co2 savings Has a grant rate of 50% Maximum grant = de-minimis, 200,000 euro’s
Examples? Typically for companies investing in new equipment or processes, but not IT equipment or mobile assets Products that save energy waste or water Low carbon energy supply Up grading to higher specification manufacturing plant & equipment that will reduce resource consumption
Process / Next Steps Contact Environment Business Support Programme for an onsite reviews Eligibility check & apply online at www.nwda.co.uk/finance Decisions will usually be made within 60 days, from a fully completed application being received.
When? Open for submitting applications from 1st of March 09. NWDA will accept applications 365 days a year via our website.
FAQs? Why is this not available as part of GBI? Can Enhanced Capital Allowances also be used? Can SMEs also apply for Grant for Business investment? Can the Carbon Trust Interest free loan also be used? Can training costs also be included? Can we also use Small Business Loans? Can larger companies apply?
Thank you for listening! We will update you on progress
www.nwda.co.uk/finance