FOCUS 34
THE RGF AND APC IS VERY SPECIFICALLY TARGETED, AS IT IS INTENDED TO SUPPORT PROJECTS
THAT WOULD NOT HAVE GONE AHEAD IN THE UK WITHOUT THIS FUNDING
Application and due diligence
Unsurprisingly, the application process was highly competitive. With such large sums on offer, applicants were asked to provide strong arguments for why the funding was necessary for their project, and to demonstrate that they had the ability and expertise to achieve their aims. Applications were then assessed based on their location, the value for money for taxpayers, the potential to create jobs, the expertise of the management involved and compliance with state aid requirements. Successful applications were then subject to due diligence prior to being confi rmed.
KPMG has worked closely with a number of companies applying for RGF grants, as well as
Targeted support
“The RGF is very specifi cally targeted, as it is intended to support projects that would not have gone ahead in the UK without this funding,” says Nick Taylor, Associate Director in Transaction Services at KPMG, who was involved in KPMG’s due diligence of applications made by JCB, Aston Martin and a number of other applicants. “As part of that, applicants have to explain why the funding is critical to the project.”
Nick stresses that Government-backed funding options such as the RGF can be extraordinarily valuable. “Government support through the RGF scheme can be an important facilitator of new projects and employment in the UK, for both the applicants and their supply chain. It increases the funds available to allow more and bigger investment, and changes the risk profi le
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
of projects to make them more viable, or make the UK a more attractive location for the new investment. In an environment where businesses are often critical of the availability of traditional bank fi nancing, RGF represents a boost for manufacturing investment and employment in the UK”.
To fi nd out more, please contact:
Nick Taylor Transaction Services T: +44 (0)121 609 6141 E:
nick.taylor2@kpmg.co.uk
other forms of available government business support programmes, helping to secure more than £400 million over the past three years. Successful applications, on which KPMG has provided due diligence services include Aston Martin, who received £1.6 million of RGF funding to support UK production of the Rapide S model, and JCB, who received £4.5 million from the RGF towards its project to develop a next-generation, heavy-duty diesel engine, which created 350 jobs in the Midlands and Wales.
KPMG also provided due diligence services on BMW’s application for RGF funding to support training and development programmes for the workforce at the MINI production facility in Oxford.
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