Regional Growth Fund to help small businesses
The Government is hoping that hundreds of small businesses will benefit from government investment of £95 million to help boost growth and rebalance the economy.
RBS, NatWest and HSBC have agreed to facilitate the distribution of the £95 million - which is part of the government’s Regional Growth Fund. RBS and NatWest will facilitate £70 million and HSBC will facilitate £25 million. The banks will not profit financially from the administration of these schemes.
Through these schemes small businesses, which are unable to secure commercial funding for their project, have the potential to benefit from government support through the banks' regional networks in order to make their project commercially viable. The schemes aim to provide grants to support SMEs considering investing in new capital assets and creating new employment.
The key features of the RBS, NatWest and HSBC schemes are:
* RBS and NatWest scheme is called the regional growth fund and will distribute £70 million; the HSBC scheme is called the Assisted Asset Purchase Scheme and will distribute £25 million.
* The funding will support new job-creating investment by SMEs across England, in particular parts that have become over-dependent on the public sector.
* 100 per cent of the RGF funding will be provided as grants to SMEs with the banks employing their regional networks to administer the schemes on a pro-bono basis.
* SMEs can qualify for a grant if they are going to invest in new capital assets, such as plant and machinery, and create new jobs - and cannot get normal bank finance.
* Grants of up to £500,000 will be awarded alongside the award of a new bank loan on commercial terms.
* To qualify for the NatWest and RBS scheme, SMEs need a turnover of less than £25 million.
* To qualify for the HSBC scheme the SME will need a turnover of less than 50 million Euros.
* The banks will not earn any fees to administer the scheme. Interest earned on any funds held on the bank's balance sheet must be used for beneficiary grants or returned to the government.
For more information on the Regional Growth Fund please visit: http://www.bis.gov.uk/policies/regional-economic-development/regional-growth-fund
Send this story to a colleague
