Grants and Funding
The Enterprise Hubs work closely with a range of partner organisations to offer assistance in securing grants and loans, introduction to venture capital and angel investors as well as referrals to specialist tax advisers.
Search our comprehensive lists of links to find out what's available, or contact Hub Director, Jim Christy, if you have a query.
East Sussex Introduction to Funding, April 2009
BUSINESS FUNDING SUMMARY
FINANCE SOUTH EAST
The funding arm of SEEDA has a number of funding options available to fund business enterprise including:
· Grant for R&D: Formally administered directly by SEEDA but now handled by FSE. For more information see: http://www.seeda.co.uk/Global_Competitiveness/Funding_%26_Advice/Grant_for_Research_&_Development/index.asp. There are four types of R&D grant: micro, research, development and exceptional.
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EXCEPTIONAL |
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DEVELOPMENT |
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RESEARCH |
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MICRO |
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New, exceptionally innovative product or process which is strategically important to the industrial/technology sector |
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Development of a pre-production prototype with significant technological advance of a new product or process |
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Research into or critical investigation of new technology, novel products or processes in an innovative sector |
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Development of a low-cost prototype for an innovative product or process |
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Significant benefits for society e.g. medical / biotechnology |
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Shape industrial research into a product or process |
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Critical analysis, trials and testing, data gathering and reports into a new product or process |
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Small scale exploitation of an innovative product or process for commercialisation |
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35% of costs |
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35% of costs |
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60% of costs |
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45% of costs |
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· Grant for Business Investment (GBI): Pays up to 20% in this region for capital investment projects. For more information see http://www.seeda.co.uk/Global_Competitiveness/Funding_%26_Advice/Grant_for_Business_Investment/index.asp. Grants are awarded as a percentage of eligible project costs. The costs covered are at the discretion of FSE, but could include:
o Equipment and machinery;
o Building refurbishment, fit-out and new build costs;
o New lease or mortgage interest costs for the project period + 3 years for SMEs or 5 years for large enterprises;
o Some intangible assets may also be eligible
o 2 years wage costs of some key, skilled jobs created directly as a result of the project.
· Commercialisation fund: The Commercialisation Fund operates in two ‘phases’ with up to £30,000 available for each phase. An application for funding that involves activities across both phases may apply for a maximum of £60,000. Phase 1 is for Proof of Concept activities including concept analysis, feasibility testing, developing prototypes, IP and product testing with third parties and Universities whereas Phase 2 is for Commercialisation including market research, customer trials, developing channels to market and commercial & market advice. The fund is a loan repayable to a level of 150% of the funding awarded and repayment is as a percentage of turnover. More details are here: http://www.financesoutheast.com/ourfunds/index.aspx?id=1116
· SEED Fund: The South East Seed Fund is a £5m equity fund that invests up to £250,000 in small and medium-sized enterprises, which may include university spin-outs/spin-ins. Fund must be matched by other funding. More details are here: http://www.financesoutheast.com/ourfunds/index.aspx?id=108.
· Accelerator loan fund: This provides an innovative source of finance for growth companies in the South East region. An initial £100,000 at any stage as long as they can demonstrate the potential for significant growth. A second loan of up to £100,000 can be made after 9 months. This is a repayable loan, further details are here: http://www.financesoutheast.com/ourfunds/index.aspx?id=94.
ENTERPRISE FINANCE GUARENTEE SCHEME
· Government backed loans to businesses administered by banks. Replaces famous Small Firms Loan Guarantee Scheme. Government backs up to 75% of loan value encouraging banks to lend.
· There is a choice of repayment options and possibility of repayment holidays. Loans from £1,000 to £1,000,000 are possible with terms up to 10 years. Government fees on top of interest rates charged by the banks are payable.
TECHNOLOGY STRATEGY BOARD – Current Competitions
· Creative Industries: Accessing and Commercialising Content in a Digitally Networked World
o £5m fund for innovation in the creative industries (Advertising, Computer games, Content creators, Digital/New media, Film & Video, TV & Radio, ICT & Comms, Music, Publishing)
o 2 levels of application:
1. Projects greater than £100k in total project value, to take between 12 and 36 months. Between 25% and 75% public funding awarded depending on stage of research.
2. Fast Track Project below £100K in total value, led by creative industry SME, expected to take 1 year to complete. 50% grant will be awarded.
· Energy Generation and Supply: Fuel cells and hydrogen technologies
o £10m to invest to invest in highly collaborative research and development in the area of Fuel Cells and Hydrogen Technologies.
o Typical projects will have a 2-3 year duration and require TSB funding of around £250k-£1m.
o Investment levels between 25% and 75% of projected costs depending on stage of research.
· Network Security: Information Infrastructure Protection
o £6m to invest in highly innovative collaborative research and development projects that will contribute to tackling the ever-increasing threat to information systems.
o 2 levels of application:
1. Projects greater than £150k in total project value, to take between 12 and 36 months.
2. Fast Track projects up to £150k in total project value, to take up to 12 months to complete.
o Grant amount between 25% and 75% depending on stage of research.
· Energy Generation and Supply: Carbon Abatement Technologies
o £15m to invest in innovative collaborative research in the area of carbon abatement technologies.
o Prioritising technologies that tackle CO2 emissions from large single point sources, primarily fossil-fuel power plant and other large process industries.
o 2 levels of application:
1. Feasibility Studies, funding projects up to £150k in total value, attracting up to 75% public funding.
2. Projects seeking public investment of between £250k and £2.5m for industry-led collaborative projects. Investment levels between 25% and 75% of projected costs.
· Low Impact Building Competitions
o Retrofit for the Future
o Invites proposals for suppliers to design and install innovative technology that will improve the energy efficiency and environmental performance of the UKs current housing stock.
o Design and Decision Tools
o £4m investment by TSB into improving the design of low impact buildings through more effective and usable design and decision tools for use at every stage of the design process.
o Monitoring of Demonstrator Buildings
o Competition to enable companies constructing demonstrator buildings to apply for funding to monitor building performance, enabling comparison with predicted performance. £10m total investment.
o The Low Impact Building Competitions are due to open in summer. Mor information will be available nearer the opening date.
· Knowledge Transfer Partnerships (KTPs): Cheap way to get a university researcher and access to university resources in your business. Must have 5 employees (paying PAYE/NICS) and three year accounts. Company pays £18k per annum and grant pays rest of costs incurred by University to employ researcher on companies behalf.
CAPITALISE
· Capitalise Business Support Ltd is a not for profit organisation supporting new and existing businesses in East and West Sussex.
· A subsidiary of 1066 Enterprise, it provides loans from £100 to £25,000 to new start-ups, existing SMEs or social enterprises. This is a loan and must be repaid. Further support and information is available from 1066 Enterprise.
PRINCE’S TRUST
· Low interest rate loans for 18-30 year olds who want to start their own business. For more information see www.princes-trust.org.uk.
WRAP
· For projects involved in recycling. See www.wrap.org.uk. This is the organisation charged with encouraging more recycling and reducing the amount of waste going to landfill.
· They have a number of tenders where prospective companies can bid including:
o New approaches and innovation to reduce household and supply chain food waste.
· They offer ‘capital grant funding’ e.g. there is an ‘Organics Capital Grant’ helping find ways to recycle organics. It pays up to 30% of capital and expenses.
· They can offer ‘support’ for a recycling business including up to £30k to pay for an interim manager and offering free consultancy to the business, £5k for management training and up to £20k to pay for IP.
CARBON TRUST
· Offer grants of up to £250k for businesses or academia for ‘applied research’ into green technologies, 40% match funding is required.
· Algae biofuels challenge (ABC). Two phase programme to support development of algae biofuel technology. The first phase addresses fundamental R&D challenges and the second is to help with moving towards large scale production of ‘algae oil’. Total investment is £20m-£30m. Phase 1 call for proposals must be entered before 15th December 2008. See http://www.carbontrust.co.uk/technology/directedresearch/algae.htm for more details.
· Offer equity based investments to promising green companies. See http://www.carbontrust.co.uk/investments/ for more details.
· Qutar UK Clean energy technologies investment fund. An equity based fund for UK companies investing in clean energy technologies. Qutar government is contributing £150m and carbon trust and other investors are bringing total fund value to £250m. More information is here.
SUSTAINABLE TECHNOLOGY FUND
· A £30m fund launched in March 2007 investing in early stage tech companies in the UK with sustainability based ideas. Equity Fund See http://www.e-synergy.com/index.asp?funds.asp for more details.
DEFRA
· DEFRA is a major funder of scientific research spending over £300m a year on research and data gathering activities. On their website they list all the grants funded and a lot are very green projects.
· The UK Environmental Transformation Fund (ETF) is a joint initiative funded and administered by the Department for Environment, Food and Rural Affairs (DEFRA) and the Department for Business, Enterprise and Regulatory Reform (BERR) and total fund is £400m. As an example they have recently launched the “Environmental Transformation Fund – Anaerobic Digestion Demonstration Programme” which has a pot of £10m for research in this area. Funding can be up to 100%! Funding is for CAPEX only but other funds are available for proof of concept and/or data gathering. More info is here
NESTA
· Big Green Challenge has now closed
· Have a venture fund that has invested in a lot of high tech companies (for equity). Say that they are now looking for environmental companies. Investment is ~£250k initially.
LOTTERY FUNDING
· BIG Lottery Fund has funded a few projects that divert waste from Landfill but a lot of the funds go to the third sector or involve diverting to disadvantaged.
· The Arts Council funded by the National Lottery provides several funding opportunities to the creative industries.
ENVIROBUSINESS
· Have a number of specific areas in which they invest including:
o Investing in Energy. May be some funds here later
EUROPEAN UNION
· EIB. Eco Innovation. Financial assistance is available to help develop innovative environmental products, services or processes that are not yet fully marketed. Up to 60% funding for SMEs.
· ENRTP. The catchy named “Thematic Programme for Environment and Sustainable Management of Natural Resources Including Energy” fund is worth €804million with awards up to €600k for a single project and funding up to 80% of eligible costs. Aims to support projects highlighting need to manage natural resources.
· Framework 7. Have a ‘climate change cooperation arm aiming to foster major EU projects with transnational collaboration. See http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2008:226:0020:0021:EN:PDF for the call for proposals.
NPL / LGC
· Have some TSB funds under the ‘Measurements for Innovators Programme’ to work with businesses to make vital measurements on new pieces of equipment. This can involve consultancy, secondment of one of their staff for up to 5 days or access to their labs and equipment for up to 10 days
PILKINGTON ENERGY EFFICIENCY TRUST
· The Pilkington Energy Efficiency Trust (PEE) scheme is provided by Pilkington and administered by a Board of Trustees who are independent of the company.
· Funding is intended to support research that will result in the more efficient use of energy in new or existing buildings. Research should result in projects that are practical, economic and that can be replicated. Amount of grant is rarely more than £20k.
ROYAL BRITISH LEGION
· Run a small business loan scheme for service leavers or un-employed ex-service personnel. The loan is for up to £5,000 and is a 3 year interest free loan although there is a service charge payable.
SHELL
· Run a programme called ‘Game Changer’ where they fund bright ideas in the following areas:
o Increasing Energy Production
o Carbon Management
o Energy Conservation, storage & Distribution
o Fuelling Transport
There is quite a rigorous application process but once you get through it Shell can find you through to Proof of Concept with this programme. Once Proof of Concept is achieved it appears as though Shell may take it on as an internal R&D project (presumably as a profit share or an equity investor) or they can license the idea to provide further funding.
· Springboard are a series of small grants (up to £40k) for innovative ideas that are innovative and helping to reduce carbon emissions. Idea must be new.
· Livewire. Fund to help 16 to 30 year olds to start their own business. For more information see www.shell-livewire.org.
BP
· Invest in alternative fuel technologies (through corporate venturing – equity based investments)
UK RESEARCH COUNCILS
· For example Engineering and Physics (EPSRC), Medical (MRC), Arts and Humanities (AHRC), Biological & Biochemical Sciences (BBSRC), all fund the more basic research.
· You would need to have a University partner and it would have to be academic research / early stage although with a commercial focus – for non-fundamental research or commercial exploitation you would be better applying to the SEEDA Finance South East R&D or TSB.