Finding Funding 

The task of finding funding to support the establishment and growth of Small to Medium sized Enterprises (SMEs) is one of the hardest tasks that we have ever been involved with. So many worthwhile cases, put up by really dedicated and very knowledgeable people, just cannot get the requisite funding for one reason or another. But if it is so tough why have we chosen to become engaged in this arena?

The Budget - 22nd April 2009    Supporting business

The financial crisis has caused a steep and synchronised global downturn. Government support, alongside action to restore the flow of credit in the financial system, is helping businesses across the UK. Budget 2009 builds on this support with targeted measures that will help businesses' short-term cashflow, including:

• *further support to loss-making businesses, by extending the enhanced loss relief announced in the 2008 Pre-Budget Report for an additional year and expanding HMRC's Business Payment Support Service, which allows businesses to defer tax payments;
• enabling businesses to spread payment of this year's inflation up-rating to business rates over three years, as announced on 31 March 2009;
• *a 'top-up' trade credit insurance scheme to help businesses maintain their finances, in which Government will offer to match private sector trade credit insurance provision, for a temporary period, if insurers reduce cover to any UK business; and
• *for a temporary period, a vehicle scrappage scheme, co-funded with industry, that will enable consumers who scrap vehicles older than ten years to replace them with a brand new vehicle at a discount of £2,000.

Over the last decade, the UK has built up key strengths that provide a platform for growth as the UK emerges from the recession. Consistent with the strategic vision set out in Building Britain's Future: New Industry, New Jobs [HM Government, April 2009] published 20 April 2009, Budget 2009 announces a package of measures that will support the adjustment towards renewed economic growth and improve the UK's competitiveness, offering:

a temporary increase in capital allowances to 40 per cent for one year, with effect from April 2009, to allow a higher proportion of private investment to be offset in that year against taxable profits;

a £750 million Strategic Investment Fund to support advanced industrial projects of strategic importance, of which a third of the funding will be earmarked for low carbon projects; and

implementation of a package of reforms to the taxation of foreign profits, including the introduction of an exemption for foreign dividends, supported by limited restrictions to the interest deduction rules.

Grant for Business Investment (GBI) replaces the Selective Finance for Investment in England (SFIE) grant January 2009

DTI official statistics publication – latest Annual Report.
In the year ending March 2006, businesses in England have accepted over 400 grant offers under SFIE, totalling in excess of £80m, and information on garnts awarded in 2007 and 2008 is awaited.

RSA Wales official statistics publication – latest Annual Report

In the 7 years to end March 2006, businesses in Wales have accepted 1173 RSA grant offers totalling  £650m. These offers relate to projects with planned investment of £2.83bn with the aim of creating or safeguarding over 70,000 jobs.