Go For Grants

This section describes the main sources of discretionary grants and loan schemes currently operating within the Furness area. Grants are available for Capital Investment and Job Creation, Research and development, wage subsidies and marketing, Training and Transport and Freight Facilities investment and for recruiting people who have been out of work for some time.

The four main sources of funding in Furness are:

Selective Finance for Investment Grants

These take two forms - discretionary job creation and capital investment grants. They are available in Furness until 31 December 2013.They are open to all businesses located in or considering relocating to Furness which is one of the UK's few national "Assisted Areas". A grant bid has to meet criteria on productivity, job numbers and qualityof a project as well as demonstrating a need for funding.

Grant is  normally available for projects with 1 to 3 year time horizons.

Large firms may qualify for up to 15% eligible project costs, small and medium sized firms basic entitlement is often around 15% but these categories can also use European and UK state aid guidelines to seek discretionary extra funding with small firms receiving up to 35% and medium sized ones an extra 10% available if the firms can justify it is essential to fill a funding gap.

For Start Up Companies a grant and business support scheme called POINT offers business advice training, help with preparation of a business plan and discretionary grant aid of up to £1,000.

Point is the best financial start up package available and you also receive free mentoring and ongoing support a further 12 months after your busineess starts trading.To start your business using POINT call Val Robinson 01229 820611 vrobinson@furnessenterprise.co.uk

The Furness Peninsula Enterprise Fund is a grant scheme that offers discretionary assistance of between £1,000 and £5,000 per new job created by existing or incoming firms classified as small or medium sized enterprises (employment worldwide must be less than 250 people) wishing to expand.To apply for a  grant under this scheme call Val Robinson 01229 820611, vrobinson@furnessenterprise.co.uk

Grants for Research and Development

There are 4 types of grant available to support different types of R&D projects:

1. Micro Projects are simple, low cost development projects lasting no longer than 12 months.  The output should be a simple prototype of a novel or innovative product or process. A grant of between £5,000 and 20,000 are available to businesses with fewer than 10 employees to cover up to 45% of eligible costs.

2. Research Projects typically involve planned research or critical investigation lasting between six and 18 months. The result of the project could be new scientific or technical knowledge that may be useful in developing a new product or process.  A grant of up to £100,000 is available to businesses with fewer than 50 employees to cover up to 60% of eligible costs.Minimum grant is £20,000.
 
3. Development Projects involve the shaping of industrial research into a pre-production prototype of a technologically innovative product or industrial process.  Up to £250,000 is available for businesses with fewer than 250 employees to cover up to 35% of eligible costs.

4. Exceptional Projects involve technology developments which have higher costs.  These projects are likely to generate much wider economic benefits and must have strategic importance for a technology or industrial sector. Grants of up between £250,000 and £500,000 are available to businesses with fewer than 250 employees to cover up to 355 of eligible costs.

Seed and Venture Capital Funds

To assist the region's small businesses raise the finance they need, the NWDA has invested in a number of seed and venture capital funds. Venture capitalists look to invest large sums of money in return for shares in your business.The funds include:

RisingStars Growth Fund - a £19 million fund specifically for high growth, early stage technology companies. Managed by Enterprise Ventures, the fund will invest up to £500,000 in selected companies.

Northwest Equity Fund - a £35.5 million fund managed by WM Enterprise which can make investments of up to £500,000.

Northwest Seed Fund - a £4.5 million scheme to help the region's entrepreneurs. Initial investments of up to £100,000 will be made in innovative early stage businesses to help develop their ideas and exploit early sales. Managed by Axiomlab Investment Management.

Northwest Business Investment Scheme - a £23 million scheme to provide seed and venture capital investment to small and medium sized businesses using money allocated by the European Regional Development Fund. Managed by YFM Private Equity

Small Firms Loan Guarantee

Small businesses with viable proposals unable to obtain conventional loans because of a lack of security
A government guarantee covering 75% of the loan, encouraging commercial lenders to provide loans to businesses lacking security. Borrowers pay dti a premium of 2% p.a. in return for the guarantee.
Grants and Loans are normally only available as a means of filling a funding gap or as a way of improving the investment rate of return. Remember it may be possible to combine one or more grants or loan schemes to help make up a funding package to support your business project.

 Notes on grant assistance schemes

All project assistance has to comply with European State aid Rules (see below)

State Aid Rules

European State Aid Rules often limit the amount of grant aid that can be made available. For companies employing fewer than 50 people the State Aid Rules limit the amount of grant aid payable to no more than 35% of project costs, for businesses with 50-249 employees the limit is 25% and 15% for companies employing more than 250 people.