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Hauliers could benefit from a new £240 million programme, including £165m f new money aimed at small and medium-sized businesses. The funds were announced in the Government's latest White Paper on competitiveness—"Forging Ahead". £100m of this is to boost the nationwide network of Business Links offices and includes grants, and a further £40m is being set aside for export aid, targeted at smaller companies.
The proliferation of grants from Government departments, the European Union and Enterprise and Development Agencies in the UK has never been more extensive—or more confusing. EU aid schemes, especially for businesses in areas which have suffered from the decline of traditional industries are wide ranging, but often over subscribed.
Advice on what is on offer by the European Union and how to prepare a proposal is available from any of the 27 European Information Centres throughout the UK. It's essential to submit applications on the correct form before the due date.
So what grants are available for smaller and medium sized firms, who is eligible and where can more information be obtained?
• Regional Selective Grants in Assisted Areas (RSA) These are discretionary grants to encourage firms to locate or expand in assisted areas. Proposed projects must create new jobs or safeguard existing ones.
• Regional Enterprise Grants for Investment Projects These are available to firms with fewer than 25 employees, and the grants are offered mainly to manufacturing sectors and some service sectors and their investment in fixed assets such as plant, machinery, buildings, land preparation and site vehicles. Firms can apply for up to 15% of the eligible expenditure. There is no limit to the size of projects, but a business plan, up-to-date accounts and cashflow projections are required and the application must explain why the grant is needed*. (Tel: 0171-276 3767) • Regional Enterprise Grants for Innovation Projects These are intended for the development and introduction of new or improved products or processes. Firms in development areas with fewer than 50 employees can apply for assistance of 50% of eligible costs up to a maximum of £25,000*. (Tel: 0171-276 3767) • Inner City Task Forces help for small businesses and start ups without track record or collateral In some of the most deprived urban areas, grants and loans are available through Task Force Development Funds. These funds are usually backed by a bank or similar institution*.
• British Steel (Industrial) Financial packages from £10,000 upward are available to support new businesses in areas affected by job losses in the steel industry. (Tel: 0114 273 1612) • Start-up Growth Capital Some Local Enterprise Agencies (LECS) have set up the Local Investment Networking Company (LINC) to bring together investors and small businesses seeking start-up growth capital.
Further information is available from your nearest TEC/LEC who can be found in the Yellow or Thomson pages under Training. • Small Firms Merit Award for Research and Training SMART awards by the DTi are aimed at encouraging innovation by small firms and planned start-ups. Up to £45,000 contribution is available towards first-year development costs and up to £60,000 towards second year costs.
• Craft Industry Grants The European Union offers grants for small and medium-sized craft-based enterprises in the UK and other EU members. Grants of up to 75% of costs can be obtained. (Contact 0114 242 2004).
• SPRINT European Strategic Programme for Innovation and Technology Transfer This aims to assist SMEs to find European commercial partners. Funding on a 50:50 basis is available for activities aimed at promoting technology transfer. (Tel: 0171215 1497) • EU Managing Integration of New Technology Grant (MINT) Small and medium-sized manufacturers wishing to improve their competitive edge through awareness and adoption of new technology can apply for a 50% funding for a two-day diagnostic consultation available from the EU. (Further information Tel: 01664 501034) • Manufacturing Intelligence Programme This DTI scheme offers SMEs 50% of the cost of demonstration projects in manufacturing, technology, management, product design, marketing, distribution and customer support. (Tel: 0171 215 1514) Criteria for access to EU funds and 175 programmes are stringent and tend to vary from scheme to scheme and from year to year. It's worth remembering that demand often outstrips supply by a significant margin.
Besides EU grants, the range of established UK grants, now to be stepped up with an injection of extra Government funding and a fresh boost for TECS, certainly look more encouraging this year.
Further sources of information: Money Facts publications (Tel: 01692 500765) and Help From Brussels The PACE Guide to EC Grants and Other Assistance (Tel: 01865 770099).
El by Will Altman
* For details of Assisted and Development Areas, contact the nearest Government Regional Office