Rural Workshop, South Derbyshire16 September 2015

Lindsay Allen, Senior Programme Manager D2N2 LEP

The Strategic Framework for D2N2

55,000 JOBS IN THE D2N2 AREA BY 2023

A more prosperous, better connected, increasingly resilient and competitive economy

Our Vision:

We will invest in five strategic priorities:

By 2023, we will have created:

55,000 additional private sector employee jobs

Business Support and

Access to Finance

Employment and Skills

Infrastructure for Economic

growthInnovation

Our priority sectors are:

Housing and Regeneration

Transport Equipment Manufactu

ring

Life Sciences

Cons-truction

Food and Drink

Manufacturing

Visitor Economy

Low Carbon Goods and Services

Creative Industries

Transport and

Logistics

Business Support for Businesses in Derby, Derbyshire, Nottingham and Nottinghamshire

(D2N2)

Developed and delivered in partnership by:

D2N2 LEP

East MidlandsChamber of Commerce

Nottingham

City Council

• University Of Derby• University Of Nottingham• Nottingham Trent University • Local Authorities• Business and private sector

• Department of Business

Innovation and Skills• Business Growth Service :

UK Trade & Investment Growth Accelerator The Manufacturing

Advisory Service

Regional Partners National Partners

Our aim: To help businesses profit from support & advice services in Derby, Derbyshire, Nottingham and Nottinghamshire

• Loans are available, some with a grant element• Interest rates vary dependent on risk• Due diligence required• 30% maximum intervention rate (often)• Minimum loan £15,000 (hence £50,000 total investment

required) re-payable in 3 years• Target sectors (but not exclusive to)• Create new jobs that can be sustained for a minimum of

3 years.• Create higher skilled jobs• Innovation

Other Funding examples

1. Asset-backed lending -securing finance against an asset or group of assets.

2. Bank Loans3. Business Angels private investors 4. Crowdfunding involves individual investors

collectively providing finance 5. Invoice financing a third party provides a business

with an advance on money owed to them by buying their unpaid invoices for a fee.

6. Trade finance for a trade transaction 7. Peer-to-Peer (P2P) finance involves private

individuals lending money through an online marketplace.

8. Private Equity fund - high capital return 9. Venture Capital firms invest in return for an equity

stake.

Commercial Finance

• £3,000 to £100,000 for new business or existing business• Secure services, purchase equipment, meet a shortfall in

funding for specific new projects, not existing running costs

• Applicants must be able to contribute a minimum of 30% • Arrangement fee of 2% and security fees payable• Repayments are made over a period of between one and

five years• Interest 12.5% for an unsecured loan (£3,000 to £20,000)• Interest for a secured loan (£20,000 to £100,000) 8%

Small Loans for Business

Funding example

ESIF is “funding of last resort” and intended to add value to the D2N2 area

• European Regional Development Fund - £104.4m• European Social Fund - £104.4m

• Larger awards that have transformational impact

ESIF - European Structural & Investment Funds

For further information about future calls please contact:

Richard Kirkland (tel: 0786 7178967) richard.kirkland@d2n2lep.org

• Tourism co-operation grants are to improve cooperation in the rural tourism sector so that destinations increase visitor numbers. New cooperation projects must be sustainable after grant funding stops. (Call expected end Sept 2015 – 8 Jan 2016)

• Small-scale tourism infrastructure grants• Food processing – some businesses can access grants

for businesses that process agricultural and horticultural products (Scheduled for later in 2016)

• Community Broadband infrastructure and use of ICT & Small scale renewable energy are also in the Programme

Other Rural Growth EAFRD Programme Streams

EAFRD: grants for the rural economy• Funded via by the European Agricultural Fund for Rural

Development (EAFRD) - £5.5m for D2N2 LEP area.• Total grant funding available for this call is £933,000• Minimum grant is £35,000 (up to 40% of total project cost)• Maximum grant £140,000 (up to 40% of total project cost)• Minimum project cost £87,500 in total (40% EAFRD)• Projects must be located within the eligible rural D2N2

area.• Applicants can be:

a micro or small-sized business – check the size of a business

a micro or small-sized social enterprise a farmer wanting to diversify into non-agricultural

activities• Applicants must pay for any costs not covered by the grant

with private funding, such as savings or a bank loan, not other public funds.

EAFRD Application Process

Applicants need to register on Rural Payments before applying. https://www.ruralpayments.service.gov.uk/

2 stage application process • Outline application and if successful• Final application

Rural Payments Agency will assess applications at both stages and only the highest-scoring applications will be successful.

Stage 1: email the completed outline application form (an excel spreadsheet with 2 sections on 2 different tabs) to growthapps@rpa.gsi.gov.uk by 27th November 17:00 then if successful,Stage 2: a full application will be requestedWork must not start on any part of a proposed project before the applicant has received and signed a grant funding agreement from the RPA. This includes ordering or paying a deposit on materials or equipment

Critical Success Factors

Funding will be offered to a maximum of 26 projects, but the actual number of projects supported may be lower, dependent upon the scale and range of the projects coming forward.

Examples of projects supported may include:

• investment in equipment, technologies or innovative processes to develop new or higher quality products

• food and drink processing• farm diversification activities that will create business growth and new

markets• construction or establishment of workshops, factories or machinery

(where clear evidence of demand can be shown)

Critical Success Factors

Applications that meet one of the following criteria will be a priority for support: Those that meet more than one of the criteria will be a higher priority.• Businesses in one of D2N2s eight priority sectors:

manufacturing of transport-related equipment life sciences food and drink manufacturing construction transport and logistics visitor economy (tourism) creative industries low carbon goods and services

• Creation of new jobs (especially higher skilled, higher paid jobs)• Projects that will increase the productivity of the business• Projects that will introduce a new product, technology or process new

to the UK

Further information EAFRD : https://www.gov.uk/government/collections/growth-programme-grants-for-the-rural-economy

https://www.gov.uk/european-structural-investment-funds/business-support-call-in-derby-derbyshire-nottingham-and-nottinghamshire-08rd15bs0001

Further information funding:http://www.d2n2growthhub.co.uk/access-to-financeCall 0333 006 9178Email : info@d2n2growthhub.co.uk

Questions