Grants & Funding « Broomfield & Alexander Chartered Accountants

Grants & Funding

Prime Minister announces ‘Big Society Capital’

Wednesday, April 4th, 2012

Jo Bartlett, Charities & Not for Profit Manager, Broomfield & Alexander

David Cameron has announced the setting up of a new fund to help charities and community groups.

The majority of funding for ’Big Society Capital’ will come from cash in bank accounts that have been dormant for more than 15 years. Estimates are that up to £600m will be available, the majority of which will come from the dormant accounts.

The money will be used to invest in ‘social enterprises’. In turn these social enterprises must be able to show that the money can be repaid through the income they generate.

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Digital Development Fund – supporting the creative sector

Wednesday, January 11th, 2012

Mike Fenwick, Director of Grants, Broomfield & Alexander

The Welsh Government has recently introduced a Digital Development Fund aimed at supporting the Creative Sector in Wales to develop new products and services to exploit across multiple digital platforms and international markets

The Fund will provide non repayable grants of between £5,000 and £50,000 up to a maximum of 50% of eligible project costs.

Applicants must be registered as businesses or have a substantial business base in Wales and be able to demonstrate how their product or service will be exploited commercially.

Eligible activities

Projects will involve the development or exploitation of a creative product or service in digital format(s). A creative product or service is defined, for the purposes of the fund, as any commercial product or service with an artistic or creative content. The project may last for a maximum of 12 months.

Eligible costs

The eligible costs are the revenue costs of the activity. These could include:

Pay of employees for time spent on the project
Costs of bringing in industry-specific expertise
Costs associated with putting together a bid for larger funds (e.g. from the Technology Strategy Board or European Union)
Overheads apportioned to the project
Consumable materials
Fees for hiring specialist facilities
Costs of development work by subcontractors and consultants
Costs of advice about copyright or related rights and fees to register rights

NB. Costs of development work by subcontractors and consultants should not usually amount to more than 30% of total project costs.

Applicants must clearly define their projects. Costs submitted for support must be the costs of the project activity only, not wider business costs.

Match Funding

Other forms of Welsh Government funding may not be used to match fund the project. Private funds, European funds and those from the business itself are allowed.

Funding under the scheme is limited and projects will only be supported if they can demonstrate that they meet the scheme criteria.

Our specialist grants team can advise you on your potential eligibility and assist you in making an application for funding. If you are interested in discussing a potential application please contact Mike Fenwick, Director of Grants on 02920 739412 or e mail Mike at mike.fenwick@broomfield.co.uk

Why not follow @BroomfieldWales on Twitter to keep up with the latest information on funding and corporate finance, or simply register for our monthly newsletter.

Wales Economic Growth Fund

Thursday, December 8th, 2011

Mike Fenwick, Director of Grants, Broomfield & Alexander

The Wales Economic Growth Fund is a new £15 million short-term, fast-track fund for businesses, providing immediate access to non-repayable grant funding for capital investment that will create and retain jobs.

The minimum level of funding is £100,000 and applications are open from 12 December 2011 with a closing date of 31 January 2012. The funding will need to be spent by the 31 December 2012.

The fund is open to applications from businesses from all sectors throughout Wales, however funding is discretionary and is subject to state aid rules and limits and the onus is on the applicant company to prove need. Retail businesses and businesses which provide services to the local market will not be eligible for support.

Applicant businesses will need to submit a business plan and detailed financial forecasts in support of their application. The business plan will need to demonstrate why grant is required and at what level, and the anticipated contribution the project will make to the wider economy.

The application will then be assessed by the Welsh Government based on a number of different criteria including project location, need, viability, value for money and state aid compliance.

The Welsh Government have indicated that they will provide an applicant with an in principle decision on support within 14 working days however further due diligence nay be required before a formal offer is made.

Accessing finance in Wales

Tuesday, November 29th, 2011

Seamus Gates, Director, Broomfield & Alexander

The climate for accessing finance in Wales continues to be difficult not helped by the latest concerns over global banking and financial markets.

Nonetheless there continues to be opportunities for businesses to consolidate or grow and develop. In order to do this funding is required; set out below are some sources of funding that should be considered.

Bank funding is still the main source of finance for businesses. Despite the difficulties, good projects can still obtain support albeit the process may be more protracted than before. The key is to provide the bank with a clear and concise business plan, up to date accounts, robust financial projections, and a clear business case.

Bank overdrafts or structured loans require adequate security and the cost of borrowing is likely to be at least 2.5% over current base rates.

Factoring or Invoice Discounting is a way of using your debtor book to raise working capital funding. This funding can be particularly effective in a business which is going through a period of rapid growth. Most funders will provide 75-80% of the debtor book as an advance with the balance coming when the debt is collected. The costs of Factoring are quite high and include a fixed monthly charge, interest and additional charges depending on whether the provider manages your debtor book.

Fixed Assets including properties, plant, machinery and equipment provide security for funding and allow the business to obtain medium or longer term funding. It is essential to use long term debt to fund long term assets.

Specialist funders in Wales include Finance Wales and UK Steel Enterprise who have fulfilled an essential role during the recent difficult times. Both of these organisations provide unsecured funding which the banks are unlikely to contemplate at the moment.

For long term funding businesses can also look to equity providers where funding is provided in exchange for a share of the business. This sort of finance is often used to fund Mergers and Acquisitions.

Whatever funding you seek the following must be demonstrated in your plan.

Good management within the business;
Good quality customers;
Good financial systems; and
Evidence of cash headroom within your financial projections.

In addition to structured debt, medium term funding and equity, Wales also has grants. Whilst the regime has changed, the following are still worth considering.

Local Authority grants are available in certain areas up to a maximum of £10,000
Welsh Government grants* have gone through a restructuring in recent years and are now primarily repayable, other than for mobile investments. However, for certain businesses this support can be akin to unsecured debt which has the added advantage of being repayable only when the business has reached a good level of success and can afford to repay. (*Wales Economic Growth Fund available from 12 Dec 2011 and closes 31 Jan 2012 – £15 million short-term, fast-track fund for businesses)

In conclusion despite the fact that we continue to be in difficult times a range of finance is still available to SMEs. The trick is to put yourself in a better position than others to obtain the funding in a competitive market – contact us if you wish to discuss any of the above in more detail or are looking to access funding or grants.