DISTRICT launch 1 December 2005

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DISTRICT launch 1 December 2005

• Financial Innovation
• Richard Hanson
• Access to Finance team
• Advantage West Midlands

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Advantage West Midlands

• One of 9 Regional Development Agencies
• AWM plans are structured around four pillars
• Developing a Diverse and Dynamic Business Base
• which includes Increasing Innovation
• Promoting a Learning and Skilful Region
• Creating the Conditions for Growth
• Regenerating Communities in the West Midlands

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Regional SME finance initiatives

• Ensure that innovation, entrepreneurship and
  business growth are not adversely affected due to
  a viable business being unable to access
  appropriate finance
• Providing access to Equity and Loan finance
• Filling the gaps that private sector finance
  sources may not normally cover
• Supporting university spin-out schemes
• Community Development micro loans
• Improving SMEs investment readiness
• Administration of national DTI grant schemes

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DTI grant schemes administered by AWM

• SFIE Selective Finance for Investment in England
• A grant of 10,000 or more (very exceptionally a
  loan) to a business to help fund new investment
  projects that lead to long term improvements in
  productivity, skills and employment.
• 10 to 20 support of capital expenditure.
• GRD Grants for Research and Development
• Grants between 2,500 and 500,000 to help
  individuals, start-ups and SMEs to fund RD on
  technically innovative products or processes.
• 35 to 60 intervention rates, grant paid against
  actual spend

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Grant for Research and Development

• Grant for RD is available in four flavours
• Micro projects, up to 12 months in length
• Research projects, 6 18 months
• Development projects, 6 36 months
• Exceptional development projects
• Research projects are aimed at producing new
  technical knowledge of concepts that have
  commercial potential
• All other project types are aimed at developing a
  pre-production prototype

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Grant for Research and Development
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GRD selection criteria

• key criteria include
• Technologically innovative
• Technical risks and R D challenges
• Commercial potential and market need
• Exploitation prospects
• Management and project team abilities
• Financial viability of the enterprise
• Intellectual property issues
• Need for financial assistance
• Wider aspects sustainability and design
  considerations

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GRD features

• Region wide not defined by clusters or
  corridors
• Slightly higher intervention rates in tier 2
  assisted areas
• A nationally recognised DTI scheme limited
  flexibility
• AWM funds are assisted by ERDF support based on
  SMEs assisted within Objective 2 areas
• Many university spin-outs have been assisted
• Few applications for grant below 20,000
• Many applicants chase the research support rate
  of 60 when their project is a development one
  attracting 35.
• Application process and length may be seen as
  burdensome for smaller projects

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GRD ineligible costs

• Expenditure incurred prior to the award of the
  grant
• Marketing costs
• Proof of concept expenditure before the
  marketability and commercial route are
  identifiable
• Certification costs of new products
• In-kind or free-of-charge contributions to the
  project
• Capital costs other than depreciation during the
  project
• Any expenditure already supported by other public
  funds
• RD facilities that are not focussed on a
  specific project