By-lined article Engineering Capacity

Date: 17 November 2008

Significant Engineering grants are still available

In a time where bank funding is becoming increasingly difficult to come by don’t forget that grant cash is still available for engineering businesses to utilise. Greg Harris, a grants and project finance specialist and qualified chartered accountant at Mitchell Charlesworth Chartered Accountants and Business Advisors, looks at how businesses can still advance, despite the economic downturn.

Last month the Government body that assesses the way capital grants for engineers are assessed, the Department for Business Enterprise and Regulatory Reform, created a new scheme which has simplified the grants application process considerably.

The Grant for Business Investment Scheme has replaced the old Select Finance for Investment scheme that, while working to some degree had very strict criteria in awarding the substantial amounts that can make a real difference to an engineering company.

The scheme is designed to encourage businesses to make a long-term strategic investment. Investments can include new state-of-the-art equipment or a new production line, but fundamentally the project needs financial backing to go ahead. Its aim is to help businesses, to expand, modernise, diversify and avoid rationalisation and is a discretionary scheme to support sustainable investment in England.

As always, the amount of grant funding that is awarded differs from business to business however, successful applicants can generally expect to receive around 10 to 20 per cent of a projects total expenditure (and this is sometimes higher in certain areas).  This can also vary depending on the quality of the project, such as if jobs are being created and the financial need for a grant.

The engineering industry as a whole needs to stay ahead of the pack in what are, admittedly, extremely tough times and be as pro-active as possible.

This industry always has been, and always will be, about innovation and advancement and grants are there to help businesses grow. Growth in these lean times may prove extremely fruitful as the economy recovers.

Significant capital investment projects can benefit from the funding but should seek help as the financial aspects of a potential grant application are onerous and can put potential applicants off. A full financial plan is required which considers all aspects of the business and potentially available sources of finance for the project. However, having a robust financial plan in this current economic environment can also have wider commercial benefits.

If you require any further information on grants please contact greg.harris@mitchellcharlesworth.co.uk

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