Growing Places Fund
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A Growing Places Fund of just over £15m was awarded to the LEP by government in 2012, to promote jobs and economic growth in the area. It is structured as a revolving loan fund.
The GPF is designed to generate economic activity by addressing immediate infrastructure to enable the delivery of jobs and housing. The fund is based on principles of investment, repayment and reinvestment, where applicants repay the loaned monies so that the LEP can re-invest into further schemes across the area. The £15m fund can only be used for capital expenditure and has an average loan term of five years.
The LEP has helped to kick-start local projects including the forward-funding of three town centre regeneration schemes. This investment will help to create over 5,000 homes and 9,000 jobs in the short to medium term.
In early 2013, the LEP took the bold and innovative step to invest £8.3m GPF into a bespoke Funding Escalator; the first such investment of GPF by a LEP. The Funding Escalator is managed by the (FCA-regulated) FSE Group and is bespoke for high growth potential SMEs. Over £6.5m has already been approved in business loans and equity for local start-ups and expanding, next generation businesses.
Legitimate requests for GPF loans can be categorised as follows:
- SMEs with high growth potential are referred to the FSE Group as the Funding Escalator is designed for these types of applicants
- Proposals to address infrastructure and site constraints, and promote the delivery of housing are referred to the Growing Places Fund guidance.