Grants to grow your Business

Sue TilleyEconomic Growth & Investment Manager

LLEP

What is the LLEP?

• LEPs introduced by Government through the Localism Act

• LLEP is one of 39 national LEPs formally recognised by HM Government

• Partnership between business, local authorities, Higher Education and Further Education

Key Priorities

Investment

•EU Structural Funds £111m 2014-2020

•EZ Business Rates £23m 2014-2020

•Local Growth Fund £80m 2015-2020

•City Deal £16m 2014-2018

‘Leicester and Leicestershire to be the destination of choice for successful businesses’

Return

• Create at least 45,000 net private sector jobs

• Attract £2.5b private sector investment

• Increase Gross Value Added (GVA) by £4b to £23b

PlacePeople

Business

Value for money :

• At least 1:5 private leverage

• Cost per job of £11k

About RGF

• £3.2 billion Government fund

• Aim: To help companies to grow

• Supports projects / programmes committed to deliver sustainable jobs and economic growth

• Total grant programme equals £21 million in Leicester and Leicestershire

Programme Area Min Grant Max Grant RatioAvg. cost per job

Sectors

Enterprising Leicester

City £1,000 £25,000 1:1 £10,000

Must be trading business to business i.e. Non-retail. Care and Financial Services are also excluded

Enterprising Leicestershire

County £5,000 £25,000 2:1 £10,000

RGF Round 3City & County £25,000 £150,000 3:1* £7,500

RGF Round 4City & County £150,000 £1million 4:1**

9:1*** £12,500

* Subject to availability ** < 50 employees *** > 50 employees

Eligibility

• For SMEs based in the County of Leicester and Leicestershire or looking to move into the area

• Commit to job creation/safeguarding

• Trading business to business

• Projects primarily capital based i.e. machinery/plant

• Commit to project completion by 31st March 2015

Points to consider• Retrospective funding is not eligible

• Procurement to test the market and prove VFM

• Clearly explain how the grant will add benefit to the project and lead to job creation/safeguarding

• Additional documents are required e.g. Accounts and Financial projections

• Grants over £25k are subject to 1% cost, to the applicant, for Due Diligence

ProcessProject Director and

Accountable Body Sign offQuality

Assurance (inc. Due Diligence)

Grants Panel

Financial Assessment

Full Application + supporting evidence (on-line)

Grants Manager Assessment

Expression of Interest (on-line)

Case Study: RGF 3Engineering CompanySummary:Bring forward the purchase of a laser cutting machine by 18 months. New machine up to 50% faster, increasing competitiveness.Project cost: £485,000Match from Business: £378,750RGF Grant: (up to 25%) £106,250Sources of Business (Private)match: VariousJob outputs: 5 jobs created, 10 jobs safeguarded

Case Study: RGF 4 Medium sized company Advanced manufacturing companySummary:New machinery lines are required to meet need of new contractsAlso changes to the internal layout of the factory. Current number of employees: 60Project cost: £7,000,000Match from Business: £6,300,000RGF Grant: (10%) £700,000Sources of Private match: Bank Finance, Reserves, Hire-Purchase.Job outputs: 42 jobs created and/or safeguarded.

Progress To Date

• More than £10m* in grants awarded so far

• 113* companies benefiting from the programme

• Over 1,635* projected jobs to be created or safeguarded

• Approximately £61m* of private investment leveraged

*Correct as at 1st Sept 2014

Changes to GBE Regulations 1st July 2014 affecting large companies

• Aid for R&D and Innovation eligible costs;• 25% experimental development• 50% industrial research• 50% feasibility studies• 100% fundamental research

• Training aid• 50% of the eligible costs• Additional incentive of 10% if disabled or disadvantaged

workers* rising to 70%

*Between the ages of 15 and 24 years

National Grants (Application direct to Government)RGF Round 6

• Projects requiring grants over £1m• Must be capital based i.e. machinery, plant• LLEP can assist – letters of support and data etc• Information can be found at:• https://www.gov.uk/understanding-the-regional-growth-fund

Growth Vouchers (SME’s)

• Government Pilot Project- vouchers up to £2000• Maximum available = 50% of total cost• Application can be made at: • https://www.gov.uk/apply-growth-vouchers

NOW is the time to invest

Contact us: admin@llep.org.uk

0116 454 2917 www.llep.org.uk

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