Grant for Business Investment


Latest News - 07 July 2011

The South West RDA has ceased to administer new applications for the Grant for Business Investment. The Coalition Government has decided to transfer the management and delivery of existing grants under the Grant for Business Investment (GBI) and Selective Finance for Investment in England (SFIE) programmes from Regional Development Agencies (RDAs) across England, including South West RDA to the Department for Business, Innovation and Skills (BIS) by 01 September 2011.

The final transfer of activity will be completed by 01 September 2011 after which date BIS will be responsible for managing existing grant projects. To allow time to prepare for the transfer, the final date for the submission of grant claims to RDA's is 01 August 2011. These claims where they are complete and accurate, will be processed by RDAs on or by 31 August 2011. Any grant claims received after 01 August 2011, or incomplete claims received before that date, will be processed by BIS after 01 September 2011. Please be aware there may be slight delays in claims being processed by BIS following the transfer of activity but both we and BIS will do all we can to minimise this by ensuring that project files and records are transferred in as complete a state as possible.

The legal rights and responsibilities arising from GBI contracts you have with South West RDA as a result of our offer letter will be transferred to BIS by means of a transfer scheme under the Regional Development Agency Act. There is no need for an individual novation.

Responsibility for GBI grants funded by the European Regional Development Fund (ERDF) will transfer to the Dept for Communities & Local Government, to whom all enquiries concerning potential new grants should be directed - www.communities.gov.uk

Applicants and potential applicants seeking grant support of £1m or more should note that they may be eligible to apply to the Regional Growth Fund. The deadline for applications in the second bidding round under the Fund was 01 July 2011. A third round may follow but this would be very small and would aim to commit any remaining unallocated money at the end of Rounds 1 and 2.


Index

Introduction

Grant for Business Investment offers grant support for sustainable business investment and job creation projects in disadvantaged areas in England, and is part of a suite of highly targeted, publicly funded products and services known as Solutions for Business.

The scheme focuses support on high-quality, innovative, knowledge-based projects that lead to long-term improvements in productivity, skills and employment in South West England. The majority of jobs created are expected to be at NVQ Level 2 and above.

Projects such as launching a new business, expanding existing companies, introducing new technology into manufacturing, or taking a new product from its early stages all the way through to production will be eligible for support.

Each application has to meet certain criteria:

  • Projects must be located in an assisted area  and the South West RDA's priority places
  • Demonstrate strong additionality (need for grant) and proven need for financial support
  • Display quality features, such as good skills levels and productivity growth measured by Gross Value Added (GVA). Good skill levels are reflected in higher salary levels and generally projects are only supported where salaries are in excess of £20,000.
  • Projects must be funded mainly by the applicant or from other private sector sources
  • Projects must involve capital investment on fixed assets such as property or machinery
  • Projects must create new jobs or safeguard existing employment above the average skill levels
  • Projects should be viable, competitive and profitable
  • Projects should not be irrevocably committed prior to the application
  • Projects should provide positive benefits to both the regional and national economy.
  • Supply markets other than local without displacement of similar businesses
  • Contribute towards the RDA's low carbon commitment

The minimum threshold for grant applications is £10,000. Grants up to £2 million are appraised and referred to the South West Investment Panel. Any projects needing grants over £2 million will be appraised by the Department for Business, Innovation and Skills (BIS).

Assisted areas

The Assisted Areas map falls into three categories known as Tiers 1, 2 and 3.

  Assisted areas map showing 3 tiers

Tier 1 covers the whole of Cornwall and the Isles of Scilly

GBI is available to any size of business subject to meeting the eligibility criteria up to a maximum of 30% of capital expenditure. If you are a medium sized enterprise this can increase to 40% and for a small enterprise it can increase to 50%.

Tier 2 covers most of the Plymouth area

GBI is available to any size of business subject to meeting the eligibility criteria up to a maximum of 15% of capital expenditure. If you are a medium sized enterprise this can increase to 25% and for a small enterprise it can increase to 35%. A Tier 2 Eligibility Ward List is available.

Tier 3 covers the whole of the South West Region not in Tiers 1 and 2

GBI is only available to small and medium enterprises. The maximum grant available subject to meeting the eligibility criteria is 20% of capital expenditure for a small enterprise and 10% of capital expenditure for a medium sized enterprise.

Please read the Small Medium Enterprise (SME) definition for confirmation of company status.

Jobs and skills

Projects must create new jobs or safeguard existing employment. The more your project increases skills and involves investment in the skills base, the more value will be placed on this criterion when considering support. A compulsory test requires all applicants to achieve a weighted average of at least NVQ Level 2 measured by reference to the Standard Occupation Codes 2000.

Productivity and GVA

Productivity remains one of the key tests, but productivity is driven by five main factors: skills, investment, innovation, enterprise and competition, and we are looking for evidence of all of these in applications. A copy of the spreadsheet used to calculate growth in GVA per FTE is freely available. Gross Value Added will form part of the initial appraisal process which we will use to evaluate your project against the performance of your business sector.

Supporting documents and downloads

If you have read the above information and think you are eligible for the Grant for Business Investment (GBI), please download the GBI Enquiry Questionnaire, fill in your answers under each individual question, and then either return it to us by email or call us so that we can advise you further.

Contact

If you have read the above information and think you are eligible for the Grant for Business Investment (GBI), please download the GBI Enquiry Questionnaire, fill in your answers under each individual question, and then either return it to the Dept for Communities and Local Government by email or call them so that they can advise you further.

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