Grant for Business Investment, or GBI, is a grant to support businesses with investment projects which will increase productivity, skills and employment deprived areas in England. Applicants must show that they need financial help for the project to go ahead. GBI replaced the Selective Finance for Investment in England (SFIE) scheme.
Businesses of all sizes can apply for GBI, but those that are not small or medium sized enterprises (SMEs) can only apply if the investment project is located within an Assisted Area.
Most business sectors can apply but there are some restrictions:
•the European Commission restricts aid to certain sectors such as the steel industry, coal, synthetic fibres, primary agriculture, fisheries and shipbuilding
•areas of the UK economy which are already fully served as support would lead to overcapacity and displacement of jobs
•projects which offer purely a local consumer-type service, for example retail or restaurants, would be considered ineligible.
The grants can be used for projects to:
•launch a new business
•modernise, expand or re-organise an existing business
•upgrade a business by introducing innovative new technology or processes
•take a new product from development to production
The maximum grant assistance in Assisted Areas (depending on the area tier status) is up to:
•30 (tier 2) or 35% (tier 1) for small companies
•20 (tier 2) or 25% (tier 1) for medium sized companies
•10 (tier 2) or 15% (tier 1) for large companies
In locations outside of the Assisted Areas small businesses can receive a maximum grant of 20% and medium sized companies a maximum of 10%.
GBI has potential additional grant uplifts and categories of support which may be available in your location. GBI is a discretionary grant and we add value by helping to maximise your chances of being supported and the value of the grant actually awarded.
The applicant has to provide the remainder of the project funds, which is called the matched funding. This has to come from private funding sources or be generated by the applicant’s normal business activities. GBI cannot be matched funding by another grant and no in-kind contributions are permissible. GBI grants are paid against agreed milestones, no up-front grant funding is provided so it is important that the matched funds are available.
Arethusa adds value to the application process by advising on the scheme, what constitutes eligible funding and expenditure, by working with the applicant to prepare the grant application ensuring it meets the scheme’s appraisal criteria, negotiating with the relevant Regional Development Agency, and by providing support at any RDA visits. In addition we can provide full project management, or a lesser service of claims management (highly recommended) to ensure the project is delivered on time and on budget, or to ensure claims are submitted regularly to maximise the business cash flow.
Please note that our services cover the whole of England. We can also assist with the equivalent schemes in Wales, Scotland and Northern Ireland.
Update for 2011: Small scale GBI was scrapped by the Government in their Local Growth White Paper. Currently we know of 2 areas of England in which it is still possible to get small scale GBI funded by the ERDF which are Cornwall and Furness. Large scale GBI (grants over £2m) are available on a discretionary basis from BIS. If your project falls into this category we strongly suggest contacting us to discuss how we can assist.
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