Business Growth Programme 2 eligibility for start up SMEs (in the marches only)
You must NOT be a B2C Franchise, Charity, Not-for-Profit, or in the Retail Sector
To be considered for Business Growth Programme 2 (BGP2) support you must be able to answer “YES” to each of the points below by the time you submit your application form:
- Are you a new start up or have you been trading for less than 6 months? (The definition of a start up is a brand new or newly emerged business venture, set up by an individual founder or entrepreneur that aims to develop a viable business model to meet a marketplace need or problem.)
- Can you provide evidence that you have registered your business? (e.g. if a limited company, Companies House registration, for a Partnership, copy of a Partnership Agreement, or for a sole trader, copy of HMRC self-employed registration is required.)
- Are you going to operate largely on a Business to Business basis? (Business to Consumer trading cannot account for more than 20% of turnover.)
- Do you have a project which will grow your business, resulting in jobs being created within 7 months from the start of your project? (A minimum of 1 full time job creation is required*.)
- Can you provide a Business Plan? (As a minimum, this should include an executive summary, owner’s background, products/services, market analysis/research and strategy, competitor/SWOT analysis, pricing strategy and Profit & Loss accounts/financial/cash flow forecasts for 2 years.)
- Can you deliver your growth project in a 4 month period following receipt of your offer of grant? (priority will be given to investment ready projects which can be completed within 4 months.)
- Do you pay your business rates to one of the local authorities based in The Marches Local Enterprise Partnership area? (i.e. Herefordshire, Shropshire and Telford and Wrekin.)
- Is your business activity listed as “eligible” on the Business Activity List?
- Do you have cash match? Cash funding is the difference between the grant you are seeking and the remaining cost of your project. All applications must provide cash funding which can be sourced from the private sector, but not other European Funds, Asset Finance or similar financial products involving a financial arrangement whereby an item is paid for in instalments, as this does not provide full evidence of defrayed expenditure. Loans, overdrafts, savings or company funds are considered to be eligible cash match and these must be secured and in place prior to approval of a BGP2 grant.)
- Can you obtain 3 competitive quotes for each element of the proposed expenditure above £1,000? (Quotes for project expenditure should not be from persons or businesses connected to your business, directors or shareholders.)
*Every project supported must create at least 1 full time job to last for a minimum of 12 months. If you are a brand new start-up and you are the individual founder or entrepreneur, then you may be able to count as the job creation. However, if you have registered your business before applying for a BGP grant, you will need to create at least one further new job.
If you answered “yes” to all of the above, visit the downloads webpage for more information about BGP2. Contact the Growth Hub in your partnership area which will provide FREE advice on completing your application.
Note 1: The use of consultants or third parties in completing the application form is an ineligible cost.
Note 2: The programme limits awards to one grant per SME from BGP2.