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.
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.