smallbusiness.co.uk: Helping your business think big

Up to Ł15,000 in grant aid and other forms of help are now available to small businesses struggling to cope with the effects of the foot-and-mouth crisis.

A new Ł50m Rural Business Recovery Fund has been created. It has been set up with the idea of helping businesses to manage the effects of foot-and-mouth disease (FMD) by "adapting and refocusing their activities, and to help them plan for recovery."

Owen Cogswell (Department of the Environment, Transport and the Regions) commented that the idea is to put in place "long-term forward planning. To be eligible a business needs to provide evidence that it is fundamentally sound but has incurred substantial loss of income due to FMD." These businesses will receive further specialist help to prepare a business recovery plan. If the plan looks viable for the long-term and the business has met other criteria - such as taking all reasonable steps to maintain demand, reduce costs and, where appropriate, draw on commercial sources of support - the Recovery Fund can contribute to the recovery plan.

Marketing help to promote the business locally and regionally, thereby encouraging visitors to return, and to create new markets for local producers and crafts businesses which may have lost revenue through the cancellation of major rural events such as County Shows, will be considered by the fund. Grants to help meet interest payments on bank loans taken out to help a business restructure and recover could also be considered. Finally, IT investment and improvements in skill levels to help tourist attractions, hotels and other rural businesses to promote and sell more of their products and services on-line can be funded. An acceleration of rural regeneration projects will benefit business in the short term.

10,000 small- and medium-sized businesses are expected to receive direct help from the fund. Help is to be focused on the worst hit counties across England, such as Cumbria, Devon, parts of the North East and Welsh Borders, and particularly on small business with a turnover of less than Ł250,000. Each Regional Development Agency will decide the eligibility criteria and type of support.

If you wish to apply for help from the fund, the first step is to contact your local Business Link (a list of the local Business Links can be found on the Business Link website at www.businesslink.org or by phoning the national Contact Centre on 0845-6009 006 - local rate) or your local Regional Development Agency:

One NorthEast: Tel: 0191-261 2000
North West Development Agency: Tel: 01925-400100
East of England Development Agency: Tel: 01223-713900
East Midlands Development Agency: Tel: 0115-988 8300
London Development Agency: Tel: 020-7983 4800
South East Development Agency: Tel: 01483-484200
South West Development Agency: Tel: 01392-214747
Advantage West Midlands: Tel: 0121-380 3500
Yorkshire Forward: Tel: 0113-394 9600

With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .

(09/5/01)

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