A wide range of financial assistance and incentive packages are available to businesses which relocate to the London Thames Gateway area, or those already in the area that want to grow.
Available support ranges from venture capital and soft loans to targeted sector support, grants and subsidised training and recruitment schemes. The criteria for assistance varies according to location, type of business, size and stage of development.
Venture capital involves selling a stake in your business to a financial investor in return for a capital injection. A longer term investment than a standard loan, it is generally only appropriate for businesses with reasonable growth potential.
By taking a stake in your business, the investor will expect to have some say in the way the business is run and to have a share of profits and future value of the business too. The investor will seek to make a profit on their investment by selling their stake after between five and seven years.
Venture capital can be provided by a firm of venture capitalists or by an individual business angel. Organisations that can help you obtain venture capital within the London Thames Gateway region include:
British Business Angels Association (BBAA)
The BBAA is a not-for-profit company, supported by the Department of Trade and Industry. This UK-wide service is sponsored by major high street banks and leading professional firms, and facilitates introductions between private investors (business angels) and businesses seeking finance.
The BBAA offers an efficient, low-cost service sourcing risk capital for small and medium businesses, which is supplied by private investors in return for shares in the business. It works through associates nationwide who help businesses prepare for the market, and many also help investors find opportunities.
The Capital Fund
The Capital Fund is a £50m venture capital fund which backs fast-growing, small and medium-sized enterprises (SMEs) in Greater London. The fund is the largest of the nine regional venture capital funds and has a mixture of public and private sector investors.
The primary objective of The Capital Fund is to maximise returns for its investors by investing in SMEs with high growth potential and management teams capable of delivering that growth. The Fund is sponsored by the London Development Agency (LDA).
Outlined below are a few examples of Soft Loan Schemes operating within the London Thames Gateway region:
SBS Small Firms Loan Guarantee Scheme (LGS)
The LGS offers support for businesses unable obtain a conventional loan due to a lack of security.
Loans of £5k to £100k are available over periods of two to 10 years. If a business has been trading for two or more years it is sometimes possible for the loan amount to be extended to £250k.
SBS will act as guarantor for 75% of the loan in return for a 2% per annum premium on the outstanding loan balance. The scheme is available to UK companies with an annual turnover of no more than £3m, or £5m if it’s the manufacturing sector.
Loans are available for most business purposes although there are some restrictions.
