Posts Tagged ‘Grants’
The government has announced details of the new Regional Growth Fund Grant Scheme which seeks to provide businesses with a grant amounting to 20% of the funding needed for a project, with the two major banks, RBS (including Lombard Lease Finance) and HSBC providing the remainder as lending.
Full details of £95m of the government’s banking RGF assistance can be found on the BIS site at: http://lnkd.in/8R4wJV
The Regional Growth Fund (RGF) scheme is a £1.4bn fund operating across England from 2011 to 2014. It is administered by the Department of Business Innovation and Skills: http://www.bis.gov.uk/
Given the discussions that we are having with banks and that the total grant fund has been capped at £95million, we believe that small and medium sized businesses should act now and secure this major new grant funding initiative before it runs out.
The Fund objective is to stimulate private sector investment by providing support for projects that offer significant potential for long term economic growth and the creation of additional sustainable private sector jobs – especially in areas which are currently dependent on the public sector.
RBS Group has secured £70m and HSBC has secured £25m of RGF to distribute to eligible customers. This is open to customers acquiring eligible assets via a NatWest/RBS/HSBC loan and also through Lombard on a lease purchase (hire purchase) agreement.
The scheme is designed to support the purchase of assets by providing a supplementary deposit contribution – this will take the form of a grant.
- The minimum amount of RGF that can be applied for is £5,000
- The maximum amount is £500,000 per customer group (i.e. including any group companies)
- The RGF element cannot exceed 20% of eligible costs
- This minimum amount to be funded after customer deposit and RGF is £25,001.
As the RGF element is a grant, no repayment is required unless the customer breaches any of the RGF criteria.
We are advising our current and future clients to contact us now to discuss how they can benefit from this valuable business initiative.
Steven Mugglestone BA FCA,
Finance Director Services
McGregors Corporate, Entrepreneurial Chartered Accountants and Business Advisers
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