GBI Grant


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Finance 4 Business are Government Grant application specialists, this presentation is about Grant for Business Investment

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GBI Grant

  1. 1. finance 4 business Grant for Business Investment (GBI)
  2. 2. GBI grant what is it? <ul><li>This is the major government grant that is available in England. It is administered by the countries development agencies and replaced the SFI grant in October 2008. </li></ul><ul><li>GBI is a discretionary grant and most manufacturing businesses are eligible to apply, as are businesses in service industries that supply a national rather than local market.   Applicants can be all sizes of companies, partnerships or sole traders; however the grant is not available to simply transfer jobs from one part of the country to another.  </li></ul>finance 4 business
  3. 3. what can GBI support <ul><li>Assistance can be provided to: </li></ul><ul><li>Establish a new business </li></ul><ul><li>Expand/ modernise/ rationalise an existing business </li></ul><ul><li>Set up research and development facilities </li></ul><ul><li>Enable businesses to take the next step from development to production </li></ul>finance 4 business
  4. 4. how much is the grant <ul><li>Minimum grant is £10,000 </li></ul><ul><li>Grant is based upon a % of project costs </li></ul><ul><li>The % depends on the type of business and the area in which it is located </li></ul><ul><li>Rates are between 10% and 35% </li></ul><ul><li>Job creation is also a factor </li></ul><ul><li>The grant will normally be restricted to the number of jobs created x £rate (for a skilled job normally £5,000) </li></ul><ul><li>For a £10,000 grant you would need to create 2 jobs (£5,000 x 2) </li></ul><ul><li>Job safeguarding can sometimes be taken into account </li></ul>finance 4 business
  5. 5. assisted areas finance 4 business
  6. 6. which businesses are excluded <ul><li>EC rules restrict aid to certain sectors: </li></ul><ul><li>steel industry, coal, synthetic fibres, primary agriculture, fisheries and ship building. </li></ul><ul><li>Areas of the UK which are fully served and which support would lead to overcapacity and displacement of jobs. </li></ul><ul><li>Projects which offer purely a local consumer service such as retail and restaurants. </li></ul>finance 4 business
  7. 7. you must be able to answer yes to <ul><li>The grant application specifically asks these questions: </li></ul>finance 4 business
  8. 8. other considerations <ul><li>When assessing whether to award a grant the RDA will consider the increase in productivity (increased Gross Value Added per employee). </li></ul><ul><li>Jobs must be created and/or safeguarded </li></ul><ul><li>The business should be capable of trading on a national level </li></ul><ul><li>The project should be innovative (you are doing something a bit different to the rest of the competition) </li></ul><ul><li>The grant has to be important to enable the project to go ahead. </li></ul><ul><li>Grant is there to cover risk, (eg delays in the projects, orders being lower than expected – sensitivity analysis is important). It has to be demonstrated that the project is fully funded, the grant is not there as gap funding. </li></ul>finance 4 business
  9. 9. other considerations <ul><li>Displacement is considered in all applications, a grant will not be awarded when it just moves jobs to a business at expense of another. Eg the food industry, there is a limit to how much people can eat, therefore a new type of food comes in at the expense of an existing brand. </li></ul><ul><li>Is there growth in the market in which you operate. </li></ul><ul><li>Other factors that are considered are: intellectual property, future training of the workforce, benefits to the region, environmental considerations. </li></ul>finance 4 business
  10. 10. examples of successful projects <ul><li>A manufacturing business expanding in to a market with spare capacity by acquiring state of the art CNC technology received grant assistance towards this. </li></ul><ul><li>Grant assistance was given towards a management buy out of a niche market manufacturer, manufacturing goods that would otherwise have been imported. </li></ul><ul><li>Assistance was awarded to an engineering company who were investing in premises and equipment allowing them to create 50 jobs and improve productivity. </li></ul><ul><li>A foreign owned company received support to safeguard its operations in the UK at the expense of a move to China, over 250 jobs were safeguarded. </li></ul><ul><li>A company that had developed new technology was awarded assistance to enable it to manufacture the product it had developed. </li></ul>finance 4 business
  11. 11. our service, how we can help? we have a 100% success rate in GBI applications we have been involved in <ul><li>Assessing the project for grant suitability. </li></ul><ul><li>Discussing the project with the appropriate grant awarding body. </li></ul><ul><li>Preparation of application forms and supplementary information (including business plan and financial forecasts) for the grant. </li></ul><ul><li>Carrying out calculations to ascertain the GVA that the project will produce and compare with RDA targets. </li></ul><ul><li>Submitting applications to the grant awarding body and attending meetings with that body re the project as required. </li></ul><ul><li>We have regular discussions with grant awarding bodies so know what they are looking for in an application. </li></ul>finance 4 business
  12. 12. contact details <ul><li>Richard Watts </li></ul><ul><li>telephone: 07872 033804 </li></ul><ul><li>e-mail: </li></ul><ul><li> </li></ul><ul><li>offices cover Yorkshire, Humberside and the North East </li></ul><ul><li>administration address: </li></ul><ul><li>10 Corby Park </li></ul><ul><li>North Ferriby </li></ul><ul><li>East Yorkshire </li></ul><ul><li>HU14 3BA </li></ul>finance 4 business