Partner Article

Last day to apply for Regional Growth Funding

Today is the deadline for companies wishing to apply for second round funding from the Regional Growth Fund (RGF).

The first round of funding has already had a massive impact in the North East, where an initial £56 million in funding was secured. According to the Department for Business, Innovation and Skills, this money helped to generate 5216 direct jobs and 8367 indirect jobs in the region.

The aim of the RGF is to help to generate jobs in the private sector, especially in areas that have historically depended on public sector business.

Private sector enterprises and social enterprises can apply for a minimum grant of £1 million, but to ensure that they receive this, it is important for companies to understand the range of funding streams and the best way to access capital.

Oversubscription is also a key concern and it is likely that some businesses will be unsuccessful.

David Frith, corporate finance partner at Deloitte said: “The regional growth fund is a good way to secure funding but as with other funding types, there is a lot of tough competition to secure the funding which is available.

“While some companies will celebrate successful bids, many others will be left to reflect and revisit their plans to assess the way forward.”

Business owners who do not receive the grants should not despair however, as other growth funds are still available to them. Private equity firms are another option, and while few are based in the region, many national companies do recognise the opportunities available in the North East.

Dan Renton, a corporate finance director at Deloitte added: “The important thing when applying for RGF money or any other fund is to ensure that the company’s business plan fully articulates the strength of the investment opportunity and strikes the right balance between ambitious but achievable targets.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .