can I find the Application Guidance Notes, Expression of Interest and
Application Guidance Notes, Expression of Interest forms and Application forms
can be downloaded from www.FinanceBirmingham.com/RailSupplyGrowthFund or
by email request to: firstname.lastname@example.org or email@example.com
are the minimum & maximum amounts I can borrow?
minimum amount is £500,000 and the maximum is £2,000,000. The applicant Company’s contribution against
the funding sought is ideally in the range of 1:1 but this will be dependent on
the specific circumstances and nature of the proposed project and applicant
I get a grant from the Fund?
Fund is a loan based facility. However,
a potential contribution of up to 10% of the application value may be sought as
grant support, if the applicant is able to clearly demonstrate the relevance
and viability of potential rail crossover products and services and how this
financial contribution would enable the applicant to enhance its participation
within the rail supply sector.
is the expected length of a project/loan and over what timeframe can the
funding be drawn down?
applicant Company must be capable of drawing down all approved loan funding
within 12 months of receiving the confirmation letter of funding support. The
repayment term of the loan will reflect the financial return period of the
applicant’s proposed project which for the introduction of crossover products
and services would need to be made by May 2021, being a maximum of 5 years from
when the Rail Supply Growth Funding was awarded. The applicant would be
expected to specify in their application their proposed repayment period and a
this Fund competition based or open ended?
The Fund is available from 2016 on a
first-come first-served basis, subject to the availability of funds, with
decisions on funding made by an Independent Investment Board meeting on a
monthly basis. The size of the Fund is currently limited to £20m, but it is a
revolving loan facility and, as loans are repaid, additional funding to new
applicants will become available.
size of businesses can apply?
is no restriction with regard to the size of the business that can apply.
type of businesses can apply?
for funding can be submitted by a single applicant Company or by a group of
named companies and organisations (such as academic partners) led by a lead
applicant Company, thereby forming a consortium application. The lead applicant
Company will, on behalf of the consortium, complete and submit all the required
documentation. It is expected that applications will be industry led with
applicant Companies being limited companies with a minimum 2 year trading
there any geographical restrictions?
Applicants must already be based in England or become based in England as part
on an inward investment or reshoring project. The funded project activities
from this Fund must be producing economic benefits such as increased
productivity and job creation/ safeguarding, which need to be wholly based in
quickly can my application for funding be processed?
will use best endeavours to approve applications for funding within 6 weeks of
an application being received. This will depend on when your application is
received within the monthly cycle of future Investment Board meetings, the
complexity of your proposed project, the quality and clarity of information in
your application form and supporting accompanying information and your ability
to respond to any requests for further information. During the application
process Finance Birmingham will keep you updated with regard to the progress of
is the main scope requirement of the Fund?
applicant must be seeking finance from the Fund to expand current products and/
or services provided to the rail supply sector or is capable of introducing
crossover products and services into the rail supply sector.
does a good application look like?
applicant Company would need to clearly demonstrate how the funding sought from
the Fund for the proposed project will enable them to be able to compete more
effectively increasing their productivity, capacity and competitiveness within
the rail supply sector leading to increased levels of employment and
level of security will be required?
would seek a debenture from the applicant Company. To avoid this impacting on
the facilities provided by your existing financial providers, we will work with
them to establish the necessary priority in their favour and to their
satisfaction. There may be circumstance where in addition personal guarantees
may be required as further security. This would be dependent on the
circumstances of the proposed project and applicant Company.
is the cost of borrowing from the fund?
rate of interest that we propose to charge a Company on a loan will be
dependent on a number of factors specifically relating to the particular
circumstances of the Company and its request for borrowing. As the funding for the Rail Supply Growth
Fund is sourced from government sources then the Fund will need to take account
of these particular Company specific circumstances to ensure that the cost of
borrowing is fully compliant with European Union State Aid rules and
regulations, which take account of matters such as the level and type of any
security that can be taken, the risk consideration of the Company in question,
etc. Clearly these factors cannot be
known without detailed knowledge of the Company and its request for funding.
Given the number of unknown factors relating to
the Company and its request for borrowing, it is only possible to give a very
general indicative rate of interest, which could be typically in the range 5-8%
subject to further information being made available in due course. It is suggested that this range is used for
business planning purposes, which may be adjusted following more detailed
discussions with the Company. In
addition to this cost, a Company would also be charged up to a 1% per year
monitoring fee and an arrangement fee of up to 2% – both of these costs are
standard costs for such borrowing.