UK Funding

EU Funding

UK Funding 

Small Business Service
Kingsgate House
General Enquiries
1 Victoria Street
London SWIH OET
Tel: 0207 215 5000
Website:


Business incubators also operate on a Europe-wide basis with an aim to facilitate networking among business incubators in Europe.

CORDIS:
Email: 

There are also a number of organisations which can help by providing investment finance for businesses: Venture Site

• Overdrafts are one form of bank loan, usually for a source of short-term finance and working capital. They can be called in at any time by the bank manager so it is advisable not to exceed your limit without permission as heavy extra charges will be incurred.
• Fixed term loans are loans repayable over a longer fixed period - usually for the purchase of capital items. Interest rates and arrangement fees will be dependant on the amount of the loan and its purpose. Your perceived business risk will also affect these rates and any conditions the bank may apply. 
• Bank Loan Guarantee Scheme This Department of Trade and Industry scheme is administered by the main High Street Banks. The scheme guarantees 80% of loans of between £5,000 and £100,000 from banks and other financial institutions for small businesses with viable business proposals but which have tried and failed to obtain conventional funding due to a lack of security.

To be eligible you must be a UK business with an annual turnover no more than £1.5m (£5m if you are a manufacturer). Many business activities are eligible but there are a number of exclusions. Loans are available for most business purposes although there are some restrictions. Applications are made directly to one of the 21 banks/lenders involved with the scheme. 

There are many national and local government initiatives available, which offer loans at reduced rates, specific support for the unemployed, and funding in the form of grants. 

• The Prince's Trust, and The Royal British Legion can also help with financing start-up businesses meeting specific criteria. 
  
  The Prince's Trust Head Office
  18 Park Square East
  London NW1 4LH
  Tel: 020 7543 1234
  Fax: 020 7543 1200
  Website
  
  If you are between 18 and 30 years old you can obtain special help from the Prince's Youth Business Trust.

Or, as a 16-30 year old you can apply for a financial contribution through the LiveWIRE Awards. 
Website

Or

The Royal British Legion Website


Many of these loans are hard to track down or are oversubscribed. For the most complete and up to date information check with your Local Enterprise Agency and the Business Link operator in your area.

• Small Firm Training Loans (SFTL) These loans are available through the Department for Education and Skills (DfES), and several major banks to help small firms who employ between 1 and 50 people to pay for vocational education or training. Businesses can borrow between £500 and £125 000 to cover training costs and, subject to a maximum loan of £5 000, consultancy advice on training matters. There is nothing to pay for up to 12 months of training - the DfES pays the interest for this period. The loan is repaid over a minimum period of one year up to a maximum of seven years. More information can be obtained from: www.dfes.gov.uk
   

• Career Development Loans (CDL) are deferred repayment loans to help individuals including self-employed people, pay for vocational training courses lasting no longer than two years plus a maximum of one year's practical experience where it is part of the course. They can be obtained from four of the major UK banks, and the government pays the interest on the loan during the course and for up to 1 month afterwards. The borrower can then repay the loan and any further interest over a period agreed by the bank. 
  
  

  For more information on both SFTL and CDLs try:  http://www.lifelonglearning.co.uk/sftl www.lifelonglearning.co.uk/cdl/front.htm  DfES Small Firms Training Loans - Freephone 0800 132 660 Career Development Loans - Freephone 0800 585 505 These loans are available from: Barclays, Bank of Scotland, Clydesdale, The Cooperative, HSBC, Lloyds TSB, Natwest, and Royal Bank of Scotland. Application form and information packs are available on-line.

• SPUR (Support for Products Under Research) SPUR provides grants of up to £162 000 for the development of new products and processes which involve a significant technological advance. SPUR favours small businesses in particular. 
  Website:

• The Knowledge Transfer Partnerships
  Run by the Teaching Company Directorate. The KTP helps any business (but favouring small firms with growth potential), to access knowledge, technology and resources at UK universities. A KTP programme involves the university, college or resea ch organisation working with a business to define their project. Together they will recuit someone with expertise and qualifications to carry the project out. The project can last between 1-3 years and is part government funded.
  

  Momenta Harwell Didcot Oxon OX11 0QJ Tel: 0870 190 2829 email: ktp-help@ktponline.org.uk

• Invoice Discounting This is an alternative to the factoring service, whereby a business's invoices are credited by a private company by up to 80% to make funds available to the business. When the original clients pay their bills, the business is sent the balance of the invoices in question (minus service charge and interest).

EU Funding 

• European Investment Fund (EIF)  Its main objective is to finance innovative and job creating SMEs through venture capital in the EU and the Applicant Countries.
  
  The EIF co-ordinates several support schemes - Growth and Environment (see loans section), ETF Start-up fund and ASAP.
  
  EU Contact:
  European Investment Fund (EIF)
  43 Avenue JF Kennedy
  L-2968 Luxembourg 
  Tel: +352 42 66 88 1
  Fax: +352 42 66 88 200
  Email: 
  Website:

• ETF (European Technology Facility) Start-up Facility  This aims to increase the availability of risk capital to innovative SMEs during their establishment and their early stage development. It aims to invest in venture capital funds such as: seed capital funds, incubators, smaller or newly established funds, funds operating regionally, funds focused on specific industries or technologies, and funds financing the exploitation of R&D results.
  
  National Contact:
  UK Venture Capital fund participating in the ETF Start-up Facility
  Avlar BioVentures (Member of I-TEC)
  St John's Innovation Centre
  Cowley Road
  Cambridge CB4 0WS
  Tel: 01223 422 255 
  Fax: 01223 426 888
  Website:
  
  EU Contact:
  European Investment Fund 
  Email: 
  Website:
  
  Or:
  Rudy AERNOUDT
  Enterprise Directorate-General
  Access to finance
  Rue de la Loi 200 (SC-27 04/04)
  B-1049 Brussels
  Tel: +32 2 2959186
  Fax: +32 2 2952154
  Email:

• Amsterdam Special Action Programme (ASAP) ASAP aims to support growth and employment in Europe. The programme supports three key areas: special window for new instruments to help finance technology related and high-growth SMEs; the European Technology Facility (ETF); the development the EIB's financing in the areas of education, health, urban renewal and environmental protection; financing of Trans-European Networks (TENs).
  
  Contact:
  Daniela Sacchi-Cremmer
  Senior Information Officer
  Public Information Division
  Tel: (00352) 4379 3138
  email:
  Website:

http://cordis.europa.eu/finance/src/eib-asap.htm

 

• Eurotech Capital A network of European financial institutions which have agreed to invest in SMEs involved in transnational high-technology projects.
  
  National Contact:
  There are 2 UK-based venture capital funds in the Eurotech capital network:
  Alta Berkeley Associates
  9-10 Savile Row, London W1X 1AF
  Tel: 020 7734 4884, Fax: 020 7734 6711
  email: 
   

AND

Rothschild Bioscience Unit
Five Arrows House, St Swithin's Lane, London EC4N 8NR
Tel: 020 7623 1000, Fax: 020 7623 6261
email: 

EU Contact:
Mr Dirk Lanaerts
DG Economic & Financial Affairs
Rue de la Loi, B-1049 Brussels
Tel: +32 2 299 1111 (Commission switchboard)
www.cordis.lu/finance/src/euro-cap.htm

Or, The European Investment Fund (EIF) (see higher up this page)

• CREA - Risk Capital for Enterprises in Start-up Phases This programme aims to facilitate the access of small enterprises to seed capital in order to finance their creation or their transfer. The Commission will support the seed capital funds by helping them to cover their operating costs in their start up phase.
  Website:

• Mutual Guarantee Schemes (MGS) This programme will finance feasibility studies on the creation or establishment of mutual guarantee companies.
  Website
  
  EU Contact for CREA and MGS:
  
  Rudy Aernoudt
  DG Enterprise
  Unit B5 – Promotion of Entrepreneurship & SMEs
  Access to finance & Community actions
  Tel: +32 2 295 9186
  Fax: +32 2 295 2154
  Email:
  Website:

OR

André Douette
General Secretariat of European Association of MGS
16 Boulevard de Waterloo
Brussels
Tel +32 (0) 2 289 8396
Email:

• Joint European Venture (JEV) Programme This EU programme aims to stimulate the setting-up of transnational Joint Ventures between European SMEs and thus enabling them to benefit from the opportunities offered by the single market. It is intended to cover some of the expenses associated with setting up a joint venture.
  
  National Contact:
  Greater London Enterprise
  Mrs Maral Ovanessoff
  28 Park Street
  SE1 9EQ London
  Tel: 020 74 03 0300
  Fax: 020 74 03 1742

  OR  EU Contact:

  Rudy Aernoudt at
  DG Enterprise
  Unit B5 – Promotion of Entrepreneurship & SMEs
  Access to finance & Community actions
  Tel: +32 2 295 9186
  Fax: +32 2 295 2154
  Website:

• The European Private Equity and Venture Capital Association (EVCA) Established in 1983 to represent, promote and facilitate the development of the European private equity and venture capital industry. As the industry's pan-European representative body with over 900 members, EVCA supports a wide range of initiatives designed to encourage an entrepreneurial environment in Europe, promote the industry to institutional investors world-wide, encourage the development of equity markets appropriate to the needs of private equity investors and investees and to establish high standards of business conduct and professional competence. 
  
  The association stimulates promotion, research and analysis of private equity and facilitates contacts with policy-makers, investors, research institutions, universities, trade associations and other relevant organisations. 
  Website

• Venture Consort Scheme This scheme encourages the equity investments of cross-border syndicates of venture capitalists, prioritising SMEs who are innovative in traditional economic sectors. Financing is granted on a project by project basis.
  Contact
  Christian Lambert,
  Centre Wager,
  Rue Alice de Jasper,
  L1920-Luxembourg
  Tel: +352 43016189

• Business Angel Networks This programme finances feasibility studies on the setting up of Business Angels Network in Europe.
  
  National Contact:
  British Venture Capital Association
  Essex House
  12-13 Essex Street,
  London
  WC2R 3AA
  Email:
  Website:

• EU Contact:
  Euro Biz Angels Network, 
  Avenue des Arts 12 Bte 7, 
  B-1210 Brussels
  Tel: +32 2 218 4313 
  Fax: +32 2 218 4583
  Email: 
  Website:
  

• The European Investment Bank  The EIB makes medium term or long term financing available to SMEs at rates lower than the market rates. The EIB arranges credit facilities for SMEs with projects of less than £20m and borrowings less than £10m, through:
  
  Barclays Bank plc, Urban and Regional Economic Development Unit.
  Tel: 0800 853179
  Website:
  Contact:
  European Investment Bank, Information and Communications Department - 'Info Desk'
  'Info Desk' Secretariat General
  100 Boulevard Konrad Adenauer
  L-2950 Luxembourg
  Tel: +352 4379 3122
  Fax: +352 4379 3189
  Email: 
  Website:

• European Investment Fund (EIF)  EIF's main objective is to finance innovative and job creating SMEs through venture capital in the EU and the Applicant Countries. The EIF co-ordinates several support schemes including Growth and Environment or the ETF Start-up fund.
  (see Venture capital section for details and examples)
  Website:
  
  EU Contact:
  European Investment Fund (EIF)
  43 Avenue JF Kennedy
  L-2968 Luxembourg 
  Tel: +352 42 66 88 1
  Fax: +352 42 66 88 200
  Email: 
  Website: