Improving Access to Finance

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Improving Access to Finance

• David Read
• Head of Finance for Business

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Access to Finance Products

• Equity Loans
• Venture Capital Loan Fund (VCLF)
• Northwest Business Angels
• Small Business Loans
• Existing Grants
• Grant for Research Development
• Grant for Business Investment
• Innovation Vouchers
• New Proposed Grants
• Carbon Reduction Capital Purchase Award
• Carbon Reduction Demonstrator Award
• Proof of Concept
• Large Company R D Scheme

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Equity Loans

• Venture Capital Loan Fund from January 2009
• provision of debt, equity and mezzanine
  finance for businesses unable to raise funds on
  the commercial market.
• Recognised market gap across sectors
• Failure to secure finance in the commercial
  sector but with viable business plans.
• NWDA response 140m available working with
  European Investment Bank and VCs nationally
• equity arrangements up to a maximum value of 2
  million which allow the equity, or parts thereof,
  to be converted into loan and
• debt incorporating an equity element or
  growth/profit/turnover share up to maximum value
  of 250,000 (enabling repayment after longer
  terms).
• Interest rates will reflect risk
• Not available to re finance existing debt

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Equity Loans

• Northwest Business Angels
• Access to a network of high worth individuals,
• Investments of between 10K and 500K for equity
  in businesses proposal exhibiting rapid growth
  potential
• Growth in Web based development proposals
• Investors needed with media experience

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Equity Loans

• Small Business Loans
• Typically unsecured loans 3,000 to 50,000 for
  new and growing businesses, charities social
  enterprises
• Open to Flexible repayment terms inc repayment
  holidays
• Viable Business Plan an ability to repay over 3
  to 5 years
• Requires a greater level of promotion into the
  Creative Digital industry sector.
• Small Business Finance Scheme announced in the
  PBR (loans 1,000 to 1M) will extend offering
  across sector

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Grant for Research Development

• Address a market failure that can only be
  addressed by public sector intervention The
  project must contain an innovative step to
  overcome these risks
• Encourages businesses to carry out projects that
  they would not necessarily undertake without the
  grant and helps to lever in finance from
  reluctant private investment sources

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Support Available

• 4 levels of support are available from 20,000 to
  500,000
• Micro
• Research
• Development
• Exceptional Development

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Micro Projects

• Helps to develop a simple low cost prototype of a
  new product or process which involves
  technological innovation or novelty (or both).
• Maximum grant available 20,000
• Grant rate 50 support
• Eligibility up to 10 employees

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Research Projects

• Helps to access the technological and commercial
  feasibility of turning innovative technology into
  a new product or process.
• Maximum grant available - 75,000
• Grant rate 60 support
• Eligibility up to 50 employees

10
Development Grant

• Helps to develop a pre-product prototype of a new
  product or process involving a significant
  technological advance.
• Maximum grant available 200,000
• Grant rate 35 support
• Eligibility up to 250 employees

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Exceptional Development

• Helps with the development of a new technology
  that is strategically important to an industrial
  or technology sector.
• Maximum grant available 500,000
• Grant rate up to 35 support
• Eligibility 250 employees

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Grant for Business Investment (GBI)

• Provides capital grants to promote business
  expansion, rationalisation, modernisation and
  diversification
• Public sector support can help raise the rate of
  sustainable growth in the region by supporting
  investment and job creation in deprived areas
• Strong evidence that the project would not go
  ahead without support
• Project has a good chance of delivering a
  sustainable productivity improvement the project
  is of benefit to the regional and national
  economy

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Grant for Business Investment (GBI)

• Support for companies investing in plant,
  equipment and machinery, and sometimes buildings
• Investment should aim to create or safeguard
  employment, improve productivity of the business
  and the skills of employees
• All companies located inside the Assisted Areas,
  and small and medium-sized companies located
  outside of Assisted Areas
• Amount of grant assistance available depends on
  location of project, amount of investment, number
  of jobs, and other quality criteria

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Grant for Business Investment (GBI)

• Scheme is open to the manufacturing and service
  sectors
• Companies in the retail and wholesale sector and
  those serving only a local market are not
  eligible
• Sectors of industry where there is over capacity
  in the market or the risk of displacing jobs are
  not eligible
• If work on a project has started before a formal
  offer of grant is made it is ineligible for SFI
  support

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New Products

• Innovation Vouchers
• Awards of 3,000 available for Small and Medium
  sized Businesses towards the cost of solving a
  business or technical problem in collaboration
  with the knowledge base
• Addressing a recognised historic focus on
  Manufacturing
• Wider focus on increased knowledge transfer
  collaboration in Creative, Digital and Business
  Professional services.

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New Products

• Innovation Vouchers
• Awards of 3,000 available for Small and Medium
  sized Businesses towards the cost of solving a
  business or technical problem in collaboration
  with the knowledge base
• Addressing a recognised historic focus on
  Manufacturing
• Wider focus on increased knowledge transfer
  collaboration in Creative, Digital and Business
  Professional services.

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New Products Coming Soon!

• Carbon Reduction Capital Purchase Award
• Carbon Reduction Demonstrator Award
• Proof of Concept
• Large Company R D Scheme

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Thank you for listening!

• For further information
• Visit www.nwda.co.uk/finance