New Fund Gives Early-Stage Firms An Advantage

January 27, 2010

New Fund Gives Early-Stage Firms An Advantage

Last month saw the launch of a new £8 million equity fund to help early-stage West Midlands SMEs reach their potential.

Provided by Advantage West Midlands with the backing of European Regional Development Fund cash, the Early Advantage Fund can offer match funded equity investment worth up to £250,000.

An initial investment worth up to £125,000 can be backed with an additional £125,000 during subsequent funding rounds, with all funds received from the scheme needing to be matched by other private investors.

The scheme will channel support towards early-stage SMEs and high growth companies that have the potential to offer a return on any investment within a 3-7 year timeframe.

Launching the fund last month, Mick Lavety, chief executive of AWM, claimed the scheme would ensure the region’s SMEs would have “access to the funds they need to start-up and grow”.

He said:

“It builds on the experience of the Advantage Early Growth Fund, which ended its initial investment period earlier this year having invested a total of £8.8 million in over 60 businesses, leveraging nearly £23 million of finance from other sources.”

Dr Andrew Muir, revealed:

“I’m sure this fund will prove popular with SMEs. In fact word is out and already there have been a number of expressions of interest in the Early Advantage Fund, with the first investment likely to be approved in the near future.

To find out more contact visit our website and read about how you can get more information about equity funds and other forms of finance available for businesses in all regions within the UK. Visit our website http://www.businessservicessupport.com/finance.php

New Grants To Recruit Young Apprentices £2500

Employers can take advantage of a new short-term scheme offering them a £2,500 grant to take on an unemployed young person.

Until the end of March, companies can claim the funding to recruit a 16 or 17 year-old apprentice.

Young people have been hit hard during the economic downturn, with 16 and 17 year-olds not in full-time education seeing the largest absolute fall in their employment rate since the start of the recession.

However, around 70,000 young people started an apprenticeship during the past year, and the AGE 16 and 17 programme now aims to provide similar opportunities for another 5,000 individuals.

Funding will be targeted at companies who are not currently in a financial position to recruit an apprentice.

A spokesperson from the funding body said :

“We recognise the particular issues faced by young people in the current economic climate and we want to support them and ensure that we are training a new generation for economic recovery.

“We particularly want to support small and medium-sized employers who are interested in employing an apprentice for the first time, or who want to employ an additional apprentice over their traditional level of recruitment.”

The incentive will be available until the end of March.

To find out more contact visit our website and read about how you can get more information about grants finance and other forms of finance available for businesses in all regions within the UK. Visit our website http://www.businessservicessupport.com/finance.php

Deadline Approaching For Biomass Fund

Time is running out for Scottish businesses to secure funding to help them install energy efficient heating systems.

The deadline to apply for support from the third round of the Scottish Biomass Heat Scheme is 12 February.

Through the fund, SMEs can grab grants worth up to £100,000 to cover a maximum of 50% of the capital costs of installing new biomass heating systems.

Launched in October 2008, the programme is aiming to increase small business competitiveness, create a growing market for biomass equipment and services, cut carbon emissions, and contribute towards meeting the Scottish Government’s target of securing 11% of the country’s energy from renewable sources by 2020.

Launching the latest funding window back in November, Energy Minister Jim Mather told the Scottish Parliament:

“We are particularly keen to receive applications for district heating schemes. At the same time as launching the third round of the scheme, we want to establish what the demand is for funding for larger-scale projects for district heating schemes and we seek expressions of interest.Applications in round three must be made by 12 February 2010, and will be assessed against a range of criteria, such as value for money, technical credibility and environmental impact.

Successful bidders will be revealed during April.

Government Guarantee Scheme Boosting Business

A recession relief scheme introduced by the Government has provided more than half a billion pounds worth of loans to UK businesses.

Research carried out for the Department of Business, Innovation and Skills revealed that 5,840 firms had drawn down more than £580 million in loans from the Enterprise Finance Guarantee Scheme.

The programme was introduced in January 2009 and offers companies with an annual turnover in excess of £25 million the opportunity to borrow up to £1 million over a ten-year period to boost their cash flow, create or safeguard jobs, and invest in new equipment.

Trade, Investment and Small Business Minister Lord Davies said:

“These impressive results show the Government is providing real help to businesses when they need it, helping to secure jobs and give businesses the capital they need to invest and grow.

“The Enterprise Finance Guarantee has been welcomed by business and, following its recent extension, it will continue to play a vital role in encouraging enterprise and investment and driving productivity and growth throughout the UK economy.”

In his Pre-Budget Report, Chancellor Alistair Darling announced an extra £500 million would be made available to extend the programme for a further year.

The scheme will now run until April 2011, with Chief Secretary to the Treasury Liam Byrne claiming:

“By extending the Enterprise Finance Guarantee for another twelve months in the Pre-Budget Report, the Chancellor demonstrated the Government’s determination to continue supporting businesses. Withdrawing that support would put the recovery at risk.”

Startup Finance For North East SMEs

A new fund has been launched to ensure start-up firms in the North East of England are equipped for success.

The £4.63 million Regional Start-Up Capital Finance Grant programme will offer funding ranging between £1,000 and £3,000 so that SMEs can buy new machinery, office equipment and ICT hardware and software.

Funding is available to North East-based businesses that meet the definition of a small to medium-sized enterprise (for example employ less than 250 staff) and have been trading for no longer than 12 months.

Grants will cover up to 50% of the total eligible costs and will enable up-and-coming entrepreneurs to overcome some of the financial barriers they face as they try to grow their business.

Part-financed through the European Regional Development Fund and One North East, the scheme falls under the Intensive Start-Up Support strand of the Government’s Solutions for Business package. It is delivered by the North East England Investment Centre (NEEIC).

Over the next two years it is anticipated that the fund will support 700 businesses, helping to create 100 new jobs and safeguard a more than 300 others.

NEEIC operations manager Irene Earle said:

“New businesses in their first trading year will have access to direct financial support to invest in small scale capital equipment and plant. That includes the purchase of manufacturing machinery, essential office equipment, ICT capital equipment and specialist software.”

For further information about how to access this fund contact us or visit our website where you will find more information about customised reports to source finance for your business. To find out more contact visit our website and read about how you can get more information about equity funds and other forms of finance available for businesses in all regions within the UK. Visit our website http://www.businessservicessupport.com/finance.php

New Fund Gives Early-Stage Firms An Advantage

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