Rural firms revamping their buildings set to benefit from new grant scheme

A business development fund in the Marches Local Enterprise Partnership area could attract £3m of private sector investment into the area and create 130 jobs.

The fund is aimed at businesses in the LEP area – Herefordshire, Shropshire and Telford & Wrekin – looking to revamp their buildings and create new jobs.

Grants of up to £100,000 will be available for eligible firms, with the finance being provided as part of a £2.5m fund launched by the LEP.

The Marches Building Investment Grant (MBIG) is available for eligible businesses to fund extensions, renovations or reconfigurations of commercial premises.

Part-financed by the European Regional Development Fund, the scheme is open to businesses which primarily trade with other businesses (B2B). The fund will award grants of up to 45% of the total project costs (up to a maximum £100,000) and are intended to cover costs directly associated with the conversion or alteration of a building.  

However, the funds cannot be used towards the cost of purchasing a property, equipment, or ‘excessive’ landscaping, nor can applications be made retrospectively.

Programme Manager Caroline Cattle, said: “We enjoyed considerable success with our previous redundant building scheme and whilst this new one is focused at a different target market, its aims are largely complimentary to that.  We’ll again be funding the transformation of buildings to provide them with a new economically fruitful future, whilst also ensuring that new jobs are created.  

“Within four months of completion all projects which have received funds should have created at least one-full time job and we’ll be paying particular consideration to the projected job creation figures when assessing applications.”

Applicants to the Marches Building Investment Grant can be either owner-occupiers or tenants although for the latter, they must have a fixed term lease with at least six years unexpired.

The conversion or refurbishment of residential property is exempt from the scheme and buildings which will be used for agricultural, horticultural, retail or hospitality purposes cannot apply either.  

LEP Director Gill Hamer added: “The difference that schemes such as this can make shouldn’t be underestimated.  Our previous Redundant Buildings Grant Scheme saw a rich and diverse range of buildings across the Marches transformed and brought back in to useful economic use.  

“We’re very much looking forward to seeing how businesses plan to make a similar impact with support from this latest fund.”
 
Herefordshire Council is the accountable body for the scheme.