Access to Finance

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Access to Finance

  1. 1. Improving Access to Finance David Read Head of Finance for Business
  2. 2. Access to Finance Products <ul><li>Equity & Loans </li></ul><ul><li>Venture Capital Loan Fund (VCLF) </li></ul><ul><li>Northwest Business Angels </li></ul><ul><li>Small Business Loans </li></ul><ul><li>Existing Grants </li></ul><ul><li>Grant for Research & Development </li></ul><ul><li>Grant for Business Investment </li></ul><ul><li>Innovation Vouchers </li></ul><ul><li>New Proposed Grants </li></ul><ul><li>Carbon Reduction Capital Purchase Award </li></ul><ul><li>Carbon Reduction Demonstrator Award </li></ul><ul><li>Proof of Concept </li></ul><ul><li>Large Company R & D Scheme </li></ul>
  3. 3. Equity & Loans <ul><li>Venture Capital Loan Fund from January 2009 </li></ul><ul><li>provision of debt, equity and mezzanine finance for businesses unable to raise funds on the commercial market. </li></ul><ul><li>Recognised market gap across sectors </li></ul><ul><li>Failure to secure finance in the commercial sector but with viable business plans. </li></ul><ul><li>NWDA response €140m available working with European Investment Bank and VCs nationally </li></ul><ul><li>equity arrangements up to a maximum value of £2 million which allow the equity, or parts thereof, to be converted into loan; and </li></ul><ul><li>debt incorporating an equity element or growth/profit/turnover share up to maximum value of £250,000 (enabling repayment after longer terms). </li></ul><ul><li>Interest rates will reflect risk </li></ul><ul><li>Not available to re finance existing debt </li></ul>
  4. 4. Equity & Loans <ul><li>Northwest Business Angels </li></ul><ul><li>Access to a network of high worth individuals, </li></ul><ul><li>Investments of between £10K and £500K for equity in businesses proposal exhibiting rapid growth potential </li></ul><ul><li>Growth in Web based development proposals </li></ul><ul><li>Investors needed with media experience </li></ul>
  5. 5. Equity & Loans <ul><li>Small Business Loans </li></ul><ul><li>Typically unsecured loans £3,000 to £50,000 for new and growing businesses, charities & social enterprises </li></ul><ul><li>Open to Flexible repayment terms inc repayment holidays </li></ul><ul><li>Viable Business Plan & an ability to repay over 3 to 5 years </li></ul><ul><li>Requires a greater level of promotion into the Creative & Digital industry sector. </li></ul><ul><li>Small Business Finance Scheme announced in the PBR (loans £1,000 to £1M) will extend offering across sector </li></ul>
  6. 6. Grant for Research & Development <ul><li>Address a market failure that can only be addressed by public sector intervention; The project must contain an innovative step to overcome these risks </li></ul><ul><li>Encourages businesses to carry out projects that they would not necessarily undertake without the grant and helps to lever in finance from reluctant private investment sources </li></ul>
  7. 7. Support Available <ul><li>4 levels of support are available from £20,000 to £500,000 </li></ul><ul><li>Micro </li></ul><ul><li>Research </li></ul><ul><li>Development </li></ul><ul><li>Exceptional Development </li></ul>
  8. 8. Micro Projects <ul><li>Helps to develop a simple low cost prototype of a new product or process which involves technological innovation or novelty (or both). </li></ul><ul><li>Maximum grant available £20,000 </li></ul><ul><li>Grant rate – 50% support </li></ul><ul><li>Eligibility – up to 10 employees </li></ul>
  9. 9. Research Projects <ul><li>Helps to access the technological and commercial feasibility of turning innovative technology into a new product or process. </li></ul><ul><li>Maximum grant available - £75,000 </li></ul><ul><li>Grant rate – 60% support </li></ul><ul><li>Eligibility – up to 50 employees </li></ul>
  10. 10. Development Grant <ul><li>Helps to develop a pre-product prototype of a new product or process involving a significant technological advance. </li></ul><ul><li>Maximum grant available £200,000 </li></ul><ul><li>Grant rate – 35% support </li></ul><ul><li>Eligibility – up to 250 employees </li></ul>
  11. 11. Exceptional Development <ul><li>Helps with the development of a new technology that is strategically important to an industrial or technology sector. </li></ul><ul><li>Maximum grant available £500,000 </li></ul><ul><li>Grant rate – up to 35% support </li></ul><ul><li>Eligibility – 250 employees </li></ul>
  12. 12. Grant for Business Investment (GBI) <ul><li>Provides capital grants to promote business expansion, rationalisation, modernisation and diversification </li></ul><ul><li>Public sector support can help raise the rate of sustainable growth in the region by supporting investment and job creation in deprived areas </li></ul><ul><li>Strong evidence that the project would not go ahead without support </li></ul><ul><li>Project has a good chance of delivering a sustainable productivity improvement; the project is of benefit to the regional and national economy </li></ul>
  13. 13. Grant for Business Investment (GBI) <ul><li>Support for companies investing in plant, equipment and machinery, and sometimes buildings </li></ul><ul><li>Investment should aim to create or safeguard employment, improve productivity of the business and the skills of employees </li></ul><ul><li>All companies located inside the Assisted Areas, and small and medium-sized companies located outside of Assisted Areas </li></ul><ul><li>Amount of grant assistance available depends on location of project, amount of investment, number of jobs, and other quality criteria </li></ul>
  14. 14. Grant for Business Investment (GBI) <ul><li>Scheme is open to the manufacturing and service sectors </li></ul><ul><li>Companies in the retail and wholesale sector and those serving only a local market are not eligible </li></ul><ul><li>Sectors of industry where there is over capacity in the market or the risk of displacing jobs are not eligible </li></ul><ul><li>If work on a project has started before a formal offer of grant is made it is ineligible for SFI support </li></ul>
  15. 15. New Products <ul><li>Innovation Vouchers </li></ul><ul><li>Awards of £3,000 available for Small and Medium sized Businesses towards the cost of solving a business or technical problem in collaboration with the knowledge base </li></ul><ul><li>Addressing a recognised historic focus on Manufacturing </li></ul><ul><li>Wider focus on increased knowledge transfer & collaboration in Creative, Digital and Business & Professional services. </li></ul>
  16. 16. New Products <ul><li>Innovation Vouchers </li></ul><ul><li>Awards of £3,000 available for Small and Medium sized Businesses towards the cost of solving a business or technical problem in collaboration with the knowledge base </li></ul><ul><li>Addressing a recognised historic focus on Manufacturing </li></ul><ul><li>Wider focus on increased knowledge transfer & collaboration in Creative, Digital and Business & Professional services. </li></ul>
  17. 17. New Products – Coming Soon! <ul><li>Carbon Reduction Capital Purchase Award </li></ul><ul><li>Carbon Reduction Demonstrator Award </li></ul><ul><li>Proof of Concept </li></ul><ul><li>Large Company R & D Scheme </li></ul>
  18. 18. Thank you for listening! For further information: Visit: www.nwda.co.uk/finance

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