Under the new UK Coalition Government mechanism for securing business finance and grant funding are rapidly changing and it is not all good news. Read more to find out about changes announced in the recent government white paper Local Growth, the future of Enterprise Capital Funds and the new Business Growth Fund.
The recent UK Government white paper ‘Local Growth' announced that Grants for Business Investment will not continue after the Regional Develop Agencies (RDAs) are abolished and South East England Development Agency (SEEDA), for one, has decided that it will not be in a position to provide any new grants under this Scheme.
Grants for Research & Development (R&D) will be adopted by the Technology Strategy Board next year although details and timing are still to be clarified. Budget constraints at SEEDA are currently preventing new awards being made so we as business advisors are not encouraging new applications for the time being. Tax Credits are administered by HMRC and they are still available to all companies engaged in R&D Projects. Existing approved projects will continue as planned and be able to claim their grants.
The Business Innovation and Skills Department has also issued a Paper following their consultation re Funding of Small and Medium Enterprises (SMEs).
The FOCUS will be on getting SMEs Investor Ready!
Enterprise Capital Funds will continue with 300m pounds of investment targeted at the SME high growth equity gap for early stage investment.
A new Business Growth Fund with 1.5 Bn pounds is established with the banks to target the upper end of the SME market in the 2m to 10million pound bracket for high growth companies with 10-100m pounds turnover per annum. Although this equity fund they seek to gain lending leverage of 2 pounds for every 1 pound in equity.
Supply Chain Finance (SCF) will be addressed by Government working with large businesses to increase SCF.
Exporters will also be helped with the Export Guarantee Scheme being beefed up to provide bond support.
The tax Regime will be addressed as soon as the Coalition Government feels it can to give UK businesses the most competitive tax regime in the G20! Hoorah!
The Grants regime of the recent past is no more and a new body, the 'Business Growth fund' will be set up to invest the banks own money, up to 1.5bn pounds equity to assist viable SMEs to grow and contribute more to the economy. Additional funds will be sought from European Investment Funds to augment the bank funds. (This is a model which the Commonwealth Development Corporation has operated successfully since 1994 without taxpayer addition) The Enterprise Finance Guarantee Scheme will continue to operate until 2014/5 but with the banks under pressure to put up barriers in relation to the degree of guarantee they seek from SMEs for these funds.
So a great deal of change forecast and it will take time to bed down, but it does seem to me that in this mélange of actions we have a range of options far greater than we have had before to bring service and finance closer to the SMEs.
The multi layered bureaucracy that was there before seems to be getting the scythe applied to it and more of the monies identified for SMEs will actually be delivered to them. The last government was achieving a delivery of 1 in 3 pounds of public spend to SMEs, so an engineering efficiency of less than 33%.
Exciting and changeable times.
This article was researched and edited by my colleague, Bob Watson, a business advisor with considerable experience and knowledge of securing finance and grants for SMEs. Bob can deliver advice and R&D project management templates that simplify the claims process.
Contact Bob Watson bobwatson@iib.ws www.support2business.co.uk
BusinessTalent is run by Linda a management consultant and business advisor, speciaist in business planning and public sector tenders, based in London, UK - www.businesstalent.co.uk
Commentary on funding and innovation with a major focus on UK government research and development tax incentives (R&D tax credit and relief) including what qualifies and how to get it!
Showing posts with label grant funding. Show all posts
Showing posts with label grant funding. Show all posts
Friday, 12 November 2010
Thursday, 29 April 2010
Never cast a clout before May is out
I thought it would be nice to share the comments penned by Business Junction below, especially as they links to a business survey of Business Junction members, of which I am one.
I do agree with most of the survey findings although I would like to say a word in support of the Train 2 Gain government funding, especially the Leadership and Management programme. The application process is very fast - at least in London - and it can be used for a wide range of training support. I have secured Train 2 Gain funding for several of my clients over the past year including to help clients improve their capacity to bid for and win public sector tenders and feedback has been very positive.
Business Junction wrote:
"Never cast a clout before May is out, especially as there are plenty of politicians to cast your clouts at, as they wander around pointing at big machines and smiling awkwardly at babies. In seven years of building the largest independent business network in London, we have never once received a request from any politician to meet with and discuss the different concerns of the thousands of business people who have attended our events. I blame Sue.
The new MPs might like to bring themselves up to speed with the pressing issues that concern us all by taking a look at the latest results of the b-annual London Business Survey that we produce in association with Clarity. They should be especially concerned with the slow payment of public sector invoices, the iniquities of the tendering process and how business support is targeted.
Results highlights
I do agree with most of the survey findings although I would like to say a word in support of the Train 2 Gain government funding, especially the Leadership and Management programme. The application process is very fast - at least in London - and it can be used for a wide range of training support. I have secured Train 2 Gain funding for several of my clients over the past year including to help clients improve their capacity to bid for and win public sector tenders and feedback has been very positive.
Business Junction wrote:
"Never cast a clout before May is out, especially as there are plenty of politicians to cast your clouts at, as they wander around pointing at big machines and smiling awkwardly at babies. In seven years of building the largest independent business network in London, we have never once received a request from any politician to meet with and discuss the different concerns of the thousands of business people who have attended our events. I blame Sue.
The new MPs might like to bring themselves up to speed with the pressing issues that concern us all by taking a look at the latest results of the b-annual London Business Survey that we produce in association with Clarity. They should be especially concerned with the slow payment of public sector invoices, the iniquities of the tendering process and how business support is targeted.
Results highlights
- Business conditions improved in the last 6 months, the 3rd consecutive period in succession
- Business confidence for the next 6 months reached its highest level since the London Business Survey began in Spring 2009
- 73% of London businesses surveyed receive payment for Public Sector projects later than 29 days from invoice
- The business support programmes by the Government, LDA and Mayors office continue to achieve a poor take up rate and where taken up by London businesses, the impact has been inconsistent
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