UK FundingRegional Growth Fund

(round 6)

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Regional Growth Fund

Mission

To support projects and programs that lever private sector investment to create

economic growth and sustainable employment.

ObjectivesObjectives

� To encourage private sector enterprise by providing support for projects with

significant potential for economic growth and create additional sustainable

private sector employment;

� To support in particular those areas and communities that are currently

dependent on the public sector make the transition to sustainable private sector

led growth and prosperity

Regional Growth Fund

RGF in a nutshell

� The Regional Growth Fund (RGF) is a £2.6 billion fund operating across England from 2011 to

2016.

� It supports projects that lever private sector investment to create economic growth and

sustainable employment. sustainable employment.

� The first 3 rounds allocated £2 billion which will leverage over £13 billion of private sector

investment and create or safeguard over 500,000 jobs.

� Round 6 of the Regional Growth Fund is now open until 30 September

� For round 6 a total of £200 million is available for bids.

� The minimum grant threshold is £1 million

Type of projects

Type of (preferred) project:

� Projects that create additional sustainable private sector growth;

� Projects that rebalance the economy in those areas currently dependent on the

public sector (map available);

� Projects that would not otherwise go ahead without support from the Regional � Projects that would not otherwise go ahead without support from the Regional

Growth Fund;

� Projects that provide good value for the public purse;

� Projects that state aid compliance;

� Project that state good evidence of “additionality”;

� Projects bids must be for at least £1 million.

Target group

The Regional Growth Fund will provide a mixture of direct support for private sector

investments and private public partnerships:

� Private sector organisations are eligible to bid either individually, or in partnership

with other private or public sector organisations;

� Public sector organisations can only bid as part of a programme/consortia bid and � Public sector organisations can only bid as part of a programme/consortia bid and

there must be a private sector lead for that bid;

� Organisations can be part of more than one bid

Fund criteria

Bids will be judged on how well they meet these objectives by assessment against five criteria:

� Project location;

� Additionality;

� Sustainable private sector growth;� Sustainable private sector growth;

� Value for money;

� State aid compliance.

Project conditions

Eligible projects are those that:

� The application must be for a least £1 million of RGF funding;

� The proposed investment must impact area(s) in England;

� The project(s) will directly leverage private sector funds;

The applicant is a private sector body or a public/private partnership or social � The applicant is a private sector body or a public/private partnership or social

enterprise;

� The support requested would be compliant with state aid regulation;

� RGF funding is essential to enable this project to proceed.

Lessons learned in round 1 through 5

Leverage

� RGF is all about the public and private sector working together. What they want to see

is a relatively small amount of RGF money helping to unlock large amounts of private

sector investment. So leverage is key.

� Throughout the four rounds of the RGF the ratio of private to public investment has � Throughout the four rounds of the RGF the ratio of private to public investment has

been 5.5 : 1.

Pace of delivery

� The areas where the RGF is having an impact need private sector growth now, not in a

few years’ time; projects that can unlock investment and create jobs quickly are far

more attractive than longer term schemes. Speed is of the essence.

� Plans that are clearly well developed and ready to go stand out from those where a lot

more preparatory work is required.

Lessons learned in round 1 through 5

Value for money

� RGF money is not there for projects and programmes that would have started anyway

without Government support.

� Bidders need to demonstrate that the RGF money they have asked for is the minimum

amount to allow the project to proceed. amount to allow the project to proceed.

Do the right thing

� RGF is all about helping companies in the right sectors to grow and diversify.

� It’s all about supporting extra jobs in the UK. So they are not interested in helping one

company grow at the expense of another or one region to benefit to the detriment of a

neighbouring region. Job creation in growth sectors are an attractive proposition for

Government support.

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