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 26 July 2008
Department for Innovation, Universities and Skills (DIUS)
 
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Capital investment grants

A grant linked to investment (human or physical capital), productivity growth and skills

Purpose

To encourage sustainable investment and job creation in some of the most disadvantaged areas in England.

How will this be achieved?

By providing capital grants to promote the expansion, rationalisation, modernisation and diversification of economic activities of businesses located in disadvantaged regions, in particular by encouraging firms to set up new establishments in the Assisted Areas.

Why offer public sector support?

Between and within the regions there are significant disparities in terms of employment and productivity that have persisted for the last 70-80 years. Business support products within the capital grants offer can help to raise the rate of sustainable growth in the regions by supporting investment and job creation in deprived areas.

What will be offered?

Financial support - normally in the form of grants though in some circumstances loans - to support investment projects by:

  • all companies located inside the Assisted Areas, and
  • small and medium-sized companies located outside of the Assisted Areas.

In some cases hybrid financial support, (e.g. a grant that becomes a repayable loan if specific conditions are triggered) may also be available.

The level of support provided is linked to the amount of capital investment, the amount and quality/skill level of the employment, and the amount of productivity growth associated with the project.

Who will be eligible?

The provision of public sector grant support is not automatic. Projects are only supported where:

  • there is strong evidence that the project would not go ahead without support;
  • the project has a good chance of delivering a sustainable productivity improvement;
  • the project is of benefit to the regional and national economy (i.e. it will not simply displace similar economic activity from a deprived area).

Full details on eligibility for public sector grant support are set out in the Selective Finance for Investment in England (SFIE) guidelines.

 

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