Regional Growth Fund (RGF) - Round 6
The Regional Growth Fund (RGF) is a competitive £3.2 billion Government fund operating across England to:
• provide grants to private sector projects and programmes with significant potential for economic growth, leveraging in private sector investment and creating or protecting jobs.
• support particular areas and communities that are currently dependent on the public sector for employment to transition to private sector-led growth and prosperity.
On 19 June, RGF Round 6 opened with at least £200 million available to bidders. The deadline for applications is 30 September 2014.
To date, the fund has allocated £2.9 billion in support to businesses and intermediaries which is projected to deliver 573,000 jobs and generate £16 billion in private investment.
Projects raising private finance and creating or safeguarding jobs that require grants of over £1 million are funded directly. To date nearly 400 companies have obtained RGF funding in this way to get their projects off the ground or scale up their plans. This accounts for roughly half of the RGF funds allocated.
The remaining RGF funding has gone to intermediaries. These can be regional or national programmes run by a variety of fund managers from asset finance specialists to local partnerships involving universities or regional news corporations. They provide support to small or medium-size enterprises (SMEs) that require less than £1 million. Rounds 1-4 programmes have to date provided funding to over 4,000 SMEs.
Previous RGF rounds have all been oversubscribed. Again in Round 6, Government will be looking to support the strongest bids which return best value to the taxpayer and generate sustainable growth. We will announce which bidders have been successful in early 2015. Grants will have to be claimed fully by March 2017, though the projects or programmes can continue beyond that date. Hence, those best placed to apply will be those with a project or programme in development that requires some extra funding to get started or reach its full potential. If you think your company or a business you support could benefit from this type of funding, read on to find out more.
What are the main terms of the support?
To be eligible, applications must meet the following criteria:
The bid must be for at least £1 million RGF support.
The project or programme needs to demonstrate it will safeguard or create jobs.
The project or programme must raise private investment, whether through the company’s own resources, investors or borrowing. The project must lever in AT LEAST £1 of private investment for every £1 of public support. Successful bids tend to far exceed this. To date, the RGF has leveraged on average £5.5 of private investment for every £1 of Government funding.
Bids must come from a wholly private organisation such as a limited company or a university.
Bids must not involve the delivery of a public sector project or service.
Our appraisal process will score
more highly activity located in areas more dependent on public- sector employment, with higher unemployment and lower private sector growth.
What kind of activity Can an RGF grant support?
RGF support is not restricted to any particular sector or type of activity. It can be used to support capital investment, research & development, or training for projects seeking to extend current activity or diversify.
We recommend potential bidders attend the regional events this summer. Members of the RGF team will be on hand to help answer questions. Local Enterprise Partnerships and previously successful bidders will also be present. You will be able to sign up for the one-to-one Expression of Interest (EoI) sessions. We strongly recommend these to potential applicants, particularly those bidding for the first time. Telephone EoI sessions will be available until September. To find out more about these events and register for them, please visit www.bis.gov.uk/rgf.
Opened: 19th June 2014
Deadline for application: 30th September 2014
Briefing documents: Full details about RGF