Regional Growth Fund - 15.05.12
REGIONAL GROWTH FUND
What is the RGF Scheme for?
• To top up a customers’ deposit for deals that would normally be declined due to insufficient deposit or inability to service debt repayments
• To assist in the purchase of assets which will safeguard existing jobs and/or create new jobs at a customers premises – No redundancies for 12 months.
Who is eligible for RGF support?
• Small and medium sized enterprises located in England, excluding London and South East regions (Dartford south and everything below and to the right of the A3).
What assets does this cover?
• Property which is to be acquired/purchased for the purposes of extending, running or aiding the operation of the customers business. Commercial property development, investment or commercial letting are excluded. However, if for example there is a husband and wife who are also the sole shareholders of a company this is eligible if they want to borrow in their sole names or SIPP.
• As discussed capital assets are also eligible through Lombard.
How much RGF support can a customer receive?
• There is a minimum RGF threshold of £5k (min.deal size £25k) and a maximum £500k (max deal size £5m)
• Firms up to 50 employees, with a balance sheet total not exceeding €10m can receive a maximum 20% of asset cost including VAT
• Firms between 50 and 250, annual turnover of €50m and/or balance sheet total €43m can receive a maximum 10%
What does the customer have to do?
• Contribute a minimum 10% deposit
• Complete the application form
• Agree to RGF terms and conditions by signing the Grant of Offer Letter
• Provide a signed Auditors Letter (provided with the Grant of Offer Letter) confirming the acquisition of the asset and the safeguard and/or creation of jobs as detailed in the application form.
What if the customer doesn’t meet their obligations or breaches the terms of their Beneficiary Agreement?
• RGF funds awarded to a customer can be clawed back by the Government
• If RGF funds are clawed back and the customer is unable to keep up the repayments of their loan facility the bank will follow their usual process for an event of default.
For further information please contact Simon Quinton Smith on 01635 551441
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