YOUR QUESTIONS ANSWERED
What is Gap Funding?
Gap funding is a public sector investment mechanism to support the delivery of suitable projects by the private sector that show a deficit between project costs and value. Project costs may include site value, construction costs, associated fees, finance and developers profit. It gives Advantage West Midlands the ability to assist projects that will significantly contribute to the economic regeneration of the region.
The scheme may support a wide range of speculative or bespoke development projects including site servicing, development of office, industrial, retail, leisure, residential and community related development.
For Whom is Gap Funding Available and Where? (top)
Any public or private sector developer may apply for Gap Funding to support projects within Tier 2 Assisted Areas and to support Small and Medium Enterprises only in other parts of the region.
How Much Funding is Available? (top)
Applications will be considered from £100,000 to £9,000,000 of funding, meeting the criteria for the Gap Funding Scheme. AWM have an initial approval for £48 million for the scheme subject to review.
The funding is limited to a maximum of 15% of total project costs (dependent on the location within the Tier 2 Areas), although the intervention rate may exceed this level for applicants with less than 250 employees (a small or medium sized enterprise).
On What Criteria Are Schemes Appraised? (top)
Projects are appraised against a range of criteria which include regeneration impact, deliverability and value for money against a range of proposed outputs which include land remediated, private sector leverage and outcomes such as new floorspace and jobs created or safeguarded.
Priority will be given to projects demonstrating high standards of design and sustainability.
How Do I Apply for Funding? (top)
Preliminary particulars of the proposed project would be provided to Thomas Lister together with an Expression of Interest. Thomas Lister would complete a Preliminary Project Assessment and subject to the outcome would invite an Outline Application.
There are two stages to the application process; outline application will consider the principles of any scheme. If the scheme is considered appropriate then a full application will be invited to consider the scheme and funding request in detail.
How Quickly Would I Receive A Response? (top)
A response will be provided to an Expression of Interest within a period of two weeks indicating whether an Outline Application will be invited or not.
We will make a decision on your outline application within four weeks of submission as to whether a full application is invited and within 4 weeks of receipt of a full application with all necessary supporting information.
For What Time Period is Funding Available? (top)
An initial programme has been identified to run through to April 2010 subject to review. All expenditure would require to be spent by 31st March 2013.
In the Event That My Application Is Successful, How Would Funding Be Paid? (top)
On the award of funding, the applicant would need to enter into a standard form of agreement. This would provide that funding is payable monthly in arrears against qualifying expenditure (normally construction works).
Funding is secured as a charge against the land. The Agreement will include provision for the repayment of grant if financial returns exceed assessed outcomes or costs are lower than the appraised level.
What Do I Do Next? (top)
A copy of an outline funding application form may be obtained from Chris Thomas. If you wish to discuss any of the information in more detail please contact:
Chris Thomas, BSc., MRICS
Thomas Lister
11 The Courtyard
Buntsford Gate
Bromsgrove
WorcestershireB60 3DJ.
Tel: 01527 871 640
Email: chris.thomas@thomaslister.com
