The GBI grant is a major government funding initiative in England aimed at supporting both new and existing manufacturing and service businesses that supply on a national level, with grant amounts starting at £10,000 and varying based on project costs and job creation. Applicants must demonstrate innovation, the potential for job creation, and product marketability without causing job displacement. Excluded sectors include steel, coal, and retail businesses that provide only local services, while successful project examples include manufacturing expansions and safeguarding jobs in the UK.

1. finance 4 business Grant for Business Investment (GBI)

2. GBI grant what is it? 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. 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. finance 4 business

3. what can GBI support Assistance can be provided to: Establish a new business Expand/ modernise/ rationalise an existing business Set up research and development facilities Enable businesses to take the next step from development to production finance 4 business

4. how much is the grant Minimum grant is £10,000 Grant is based upon a % of project costs The % depends on the type of business and the area in which it is located Rates are between 10% and 35% Job creation is also a factor The grant will normally be restricted to the number of jobs created x £rate (for a skilled job normally £5,000) For a £10,000 grant you would need to create 2 jobs (£5,000 x 2) Job safeguarding can sometimes be taken into account finance 4 business

5. assisted areas finance 4 business

6. which businesses are excluded EC rules restrict aid to certain sectors: steel industry, coal, synthetic fibres, primary agriculture, fisheries and ship building. Areas of the UK which are fully served and which support would lead to overcapacity and displacement of jobs. Projects which offer purely a local consumer service such as retail and restaurants. finance 4 business

7. you must be able to answer yes to The grant application specifically asks these questions: finance 4 business

8. other considerations When assessing whether to award a grant the RDA will consider the increase in productivity (increased Gross Value Added per employee). Jobs must be created and/or safeguarded The business should be capable of trading on a national level The project should be innovative (you are doing something a bit different to the rest of the competition) The grant has to be important to enable the project to go ahead. 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. finance 4 business

9. other considerations 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. Is there growth in the market in which you operate. Other factors that are considered are: intellectual property, future training of the workforce, benefits to the region, environmental considerations. finance 4 business

10. examples of successful projects A manufacturing business expanding in to a market with spare capacity by acquiring state of the art CNC technology received grant assistance towards this. Grant assistance was given towards a management buy out of a niche market manufacturer, manufacturing goods that would otherwise have been imported. Assistance was awarded to an engineering company who were investing in premises and equipment allowing them to create 50 jobs and improve productivity. 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. A company that had developed new technology was awarded assistance to enable it to manufacture the product it had developed. finance 4 business

11. our service, how we can help? we have a 100% success rate in GBI applications we have been involved in Assessing the project for grant suitability. Discussing the project with the appropriate grant awarding body. Preparation of application forms and supplementary information (including business plan and financial forecasts) for the grant. Carrying out calculations to ascertain the GVA that the project will produce and compare with RDA targets. Submitting applications to the grant awarding body and attending meetings with that body re the project as required. We have regular discussions with grant awarding bodies so know what they are looking for in an application. finance 4 business

12. contact details Richard Watts telephone: 07872 033804 e-mail: richard@finance4business.biz www.finance4business.biz offices cover Yorkshire, Humberside and the North East administration address: 10 Corby Park North Ferriby East Yorkshire HU14 3BA finance 4 business