Partner Article

Large companies could miss out on future RGF funding

Neville Baldry, a partner at Clive Owen & Co LLP in Darlington, explains why large North East businesses could miss out on Regional Growth Fund (RGF) money because of a change in EU state aid rules.

Changes to be introduced next summer mean that Round 5 of the RGF, which was announced last week, may be the last opportunity for larger companies to access grant support for capital projects.

Larger firms are classed as having more than 250 employees and a turnover of more than 50m Euros.

A major benefit from RGF for the region’s SME’s has been the supply chain opportunities made possible because of large scale projects of international companies. The changes will significantly reduce the attractiveness of the region for projects of this nature, and lead to a reduction in investment in the region.

Large companies with expansion plans should look closely at this round of the Regional Growth Fund as it may be their last opportunity to access Government grant funding.

Mr Baldry’s warning comes as the Deputy Prime Minister, Nick Clegg, urged businesses to get ready to apply for the next round of RGF monies when it formally opens in October.

Application forms for Round 5 will be available in early October and businesses will have until the closing date of December 9 to submit their bids.

Any companies which will not be ready to apply for Round 5 will be able to apply for Round 6, which will be launched in the summer of 2014.

This was posted in Bdaily's Members' News section by Clive Owen & Co LLP .