Embed Size (px)
Citation preview
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’ brandline are trademarks of SMMT Ltd
SMMT Open Forum
Breakout session 1
Funding support
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 2
Steve Hetherington
Investment Director
Finance Birmingham
Tooling funding programme
Presentation to SMMT Open Forum Briefing
4th November 2014
Tooling funding programme
• Finance Birmingham
• Birmingham City Council
• Traditional sources of finance not suited to traditional tool funding cycle
• £12m RGF funding
• £12m matched funding – West Midlands Metropolitan Authorities Pension Fund
Tooling funding programme
• A £24m revolving loan funding programme
• 5 year Fund. Must commit £12m by May’15
• Aimed at component manufacturers and toolmakers
• To fund design, development & manufacture of tools.
•Final manufacture in England
Headline details
• Provides loan facilities of £50k to £1m
• At a commercial rate of interest plus 1% arrangement fee
• No personal Security (guarantees etc.)
• Security of debenture – full priority to existing finance providers so no impact on their facilities
• Tranche drawn downs (usually 3)
• Repay the loan when you get paid for the tooling by OEM/tier 1
Need to show
• Firm orders for tooling from OEM / tier 1
• Proven ability to complete similar projects
• Safeguarding & or creating jobs in England
• Unable to fund all/part from current Bank facilities
Application process
• Complete expression of interest form (EOI)
• Review & discuss EOI with Programme Team
• Complete application form
• Monthly Investment Boards
• Decision in 4-6 weeks from EOI
• Receive and sign offer letter
Example 1
• Tier 1. Component for new JLR AJ200 engine
• Located in South of England
• £1m towards tooling cost of £1.6m
• Approved at first Investment Board 24 July
• Paperwork finalised
• First tranche of £514k drawn mid October for payment to their toolmakers.
• 2 Subsequent tranched releases by year end
• Repayment upon PPAP in April 2015
Example 2
• Tier 1/2. located in West Midlands
• Plated injection mouldings
• £350k towards tooling cost of £414k
• Went to Investment Board on 11th September
• 1st tranche £126k drawn 6th October for payment to their toolmaker
• Subsequent tranches paid by March 2015
• Repayment of Loan anticipated late 2015
Want more information
• Look at our applicants guidance notes, FAQs, EOI and application documentation on our web site - www.financebirmingham.com
• Contact our helpline - 0121 233 4903
AMSCI
National AMSCI 2014
‘Local’ AMSCI
National AMSCI 2014
• A Funding competition designed to improve global competiveness of the UK
• £100m of England-wide funding
• Minimum £1m per collaborative project – 1 party must be a manufacturing business
• Loans and Grants
• Closing date for applications –December 2014
• Encouraged to engage early
Local AMSCI
• Available to companies in Black Country, GB&S, Coventry & Warwickshire and Liverpool City Region LEP areas
• Open now & until all funding committed
• £2.1m initially but further monies will become available
• Automotive and Aerospace sectors
Local AMSCI
• Loans and Grants from £100k upwards
• Funding projects
• Project needs OEM/Tier 1 support
• Looks to fund Working Capital, Skills & Training, R&D, Capital Equipment
Next Steps
• Complete expression of interest form (EOI)
• Review & discuss EOI with AMSCI Team
• Complete application form
• Full application assessed for technical and financial robustness
• Investment Board
Contact Details
• www.financebirmingham.com/amsci/2014
• AMSCI Helpdesk 0121 233 4917
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 18
Aiden Farrell
Team Leader – Vocational Educational Directorate
Department for Business Innovation and Skills
Employer Ownership of Skills
Employer Ownership Fund
SMMT Open Forum
4 November 2014
Aiden Farrell
VE Directorate
20
Employer Ownership is at the heart of skills policy
We are reforming the skills based around the needs of
employers through…..
Employer Ownership Pilots –
supporting employer owned skills initiatives
supporting partnerships to take ownership of skills
Apprenticeship reforms –
giving employers the key role of defining new Standards
considering new funding proposals
Qualification reforms
ensuring all new qualifications have employer backing
removing qualifications that are little used
Employer Ownership Fund
building on lessons learned from EOP
freedom to deliver what the business needs
21
What has the EOF been designed to be?
EOF has set up to be…. Strategic
Short targeted calls
Focus on specific skill areas
Flexible
Simple
Simplified application form
Straightforward grant negotiations
Applications assessed as received and notified if threshold passed
Swift
Grant Offer Letters to be issued quickly
Ambition for this to be within 5 weeks of application
Grant to market quickly to allow projects to get underway
22
What are the rules for applying?
To deliver on those commitments we need a firm set of
rules….
Single employers - only single employers can apply for funding
No third parties – intermediaries and training providers can’t apply
Age requirements - available for training employees aged 19+
Exclusions - Traineeships/Apprenticeship/HE and any statutory training
Match funded - 50% funding from government for transferable skills –
25% for specific company training
State Aid compliant - grants up to £1.5m (€2m) and eligible costs
specified in the application
Incentive Effect – applications must prove there is additionality being
delivered through the project
23
What are the happened in round 1?
The first phase of the fund was successful….
Automotive supply chain skills call round 1 opened on 6 May and
closed 25 July
7 Applications received
6 Applications successful – swift delivery grants agreed in
process taking just over 5 weeks
£2.7m of grant funding awarded
Significant training projects supported covering a range of
training
14,575 learner outcomes in total – mix of course lengths
24
When does round 2 start and what are the changes?
We are ready to open for business again….
Automotive supply chain skills call was announced on 20 October.
Go-live - open for applications from 03 November
Funding - £10m of funding available
Build on round 1 - lower grant threshold - £40,000
New application form - built on feedback from bidders in round 1
Wages costs - trainee’s wage costs now an eligible cost
Longer run - close on 6 February 2015
25
Where can I go for help?
Sources of help
Any questions that are not resolved today, or occur to you later, can
be emailed to:
26 THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 26
Question and answer session
