Businesses told only strong RGF bids will succeed

BLACK COUNTRY businesses hoping to mount successful bids for finance through the Regional Growth Fund have been told they will have to submit very competitive applications otherwise they stand little chance of success.

Around 200 delegates attended a roadshow event at the Copthorne Hotel in Dudley yesterday to hear how they should prepare bids for the second round of the funding process, where £950m is up for grabs.

The RGF has been designed to provide support for projects that can deliver sustained economic growth and create new private sector jobs. It is aimed at helping communities currently dependent on the public sector make the transition to private sector-led growth and prosperity.

During a series of presentations, the delegates were told the bidding process was a competitive exercise and the stronger the submission, the better the chance of success.

Firms were told they should prepare in the same way as if they were applying for a bank loan. They should enclose details about cash flow, revenue predictions and should predict how many jobs the scheme will create.

In that way, the panel deciding bids will have a clearer indication of the value of the project and if it meets the criteria for growth.

If they can secure the backing of their Local Enterprise Partnership then this will improve their chances of success.

Speaking at the event was Sir Ian Wrigglesworth, deputy chairman of the Independent Advisory Panel which will make its recommendations to Deputy Prime Minister Nick Clegg. Lord Heseltine is the chair of the panel, which consists of a team of academics, business and civic leaders.

Sir Ian said: “I am delighted to be here in Dudley to promote the regional growth fund and highlight the aims and the benefits of this kind of investment.

“The aim of the fund is to support the vision of businesses, entrepreneurs and private-public partnerships to create new jobs and economic growth in their area.”

The second round of RGF bids will close at midday on July 1. The second round will aim to allocate around £950m – the bulk of the £1.4bn fund.

Successful bids in the first round included £15m to divert the A45 to enable Birmingham Airport’s runway extension to go ahead and an as yet undisclosed settlement to Jaguar Land Rover to support the development of a new family of engines and separately, for a new small common vehicle platform for technologically advanced premium automotive vehicles in Whitley and Gaydon.

The bids are currently at the due diligence stage and funding will be allocated once this is complete and the panel is satisfied the bids are sustainable.

Yesterday’s event was the third in a series of roadshows organised by the Department for Business Innovation and Skills. More than 1,000 people are expected to attend the latest series of events during the next few weeks.

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