Compass Business Finance has been granted a Government award to support SME’s investment in capital equipment. The grants will be made available by Compass to SME’s in selected areas and to qualify for the support an SME must commit to either recruiting new employees or safeguarding existing jobs. The award is from the Government’s Regional Growth Fund (RGF), a £2.85 billion fund operating across England from 2011 to 2017.
Compass specialises in providing finance to the industrial sector of the UK economy and their RGF award enables qualifying businesses to receive a grant towards the deposit on a new investment. The grant may be up to 20% of the value of the investment dependent on the size of the business, the number of jobs being impacted and the underlying deposit required to receive a credit acceptance.
Are you Eligible for Regional Growth Funding?
In order to check your eligibility for Regional Growth Funding, we have put an initial check list together (see below)
- Are you planning to finance an Asset?
- Are you unsure whether you are able to find the necessary deposit?
- Are you a small or medium sized business with fewer than 250 employees and turnover under £35 million?
- Your business is not in financial difficulty?
- Through the proposed investment will you be creating new additional jobs or safeguarding jobs which would otherwise have been lost?
Key features and benefits
RGF monies take the form of a grant, meaning that if you meet the conditions under which it was awarded, there will be no requirement to pay it back.
The level of available grant is based upon the
- The size of your business
- The amount of your investment in capital equipment
- The level of deposit required to gain a finance approval and the available cash you have to cover this deposit
- The number of jobs being safeguarded or created as a result
As the beneficiary, you have to commit to creating or safeguarding a number of jobs based upon the amount of RGF grant received. A minimum of one job must be created or safeguarded for every £10,000 of grant received. For Example: Your business is investing £100,000 + VAT in a new machine tool. As a result you will create 2 additional jobs. You could be eligible for a grant of up to £20,000 towards the deposit for the new investment.
Approximately 12 months after your loan starts, you will be required to get formal confirmation from an accountant that the commitment you made to either create or safeguard jobs has been fulfilled.
The investment will be financed by Compass and be subject to eligibility and underwriting requirements.