Exceptional Regional Growth Fund (eRGF) support
Updated 11 July 2013
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eRGF support
Exceptional Regional Growth Fund (eRGF) support is an award of RGF money to a project or programme outside of competitive RGF bidding rounds. This may be to respond quickly to unexpected economic events. For example:
- where the economic situation in a local area deteriorates suddenly (a decision on RGF support for an organisation in that area may be needed even more quickly than the timetable of an open round might allow)
- to respond to an economic opportunity which would be missed if the bid were to wait for an open RGF bidding round
Eligibility
Eligibility is the same as for an open RGF round. In particular:
- the job creation must occur in the private sector
- all bids must be State Aid compliant
- the minimum threshold for bids is £1 million
Criteria for bids
Applicants also need to fulfil a number of additional criteria specific to eRGF.
Urgency
eRGF support will only be considered when an applicant’s circumstances mean they could not apply to an open round of RGF, or if the next round is yet to be announced, they must demonstrate why the bid is time-limited.
Exceptionality
eRGF support will only be awarded when there are exceptional local economic circumstances – for instance in response to a significant economic shock or a major economic opportunity.
Last resort
eRGF support will only be considered when there are no other forms of public or private support available. Applicants will need to demonstrate they have exhausted other potential sources of support.
Applying for eRGF
Organisations interested in applying for eRGF support may wish to contact their BIS Local office. BIS Local will discuss with prospective applicants whether their bid fits all the criteria before recommending whether the bidder should make a formal application for eRGF support.
Assessment of bids
Bids will be assessed initially to determine if in principle they are eligible for exceptional-RGF support; applicants will need to verify the need to respond urgently and the scale of the economic shock or opportunity will be assessed.
After the initial advice to applicants, bids will undergo the standard RGF appraisal against such factors as location, value for money and private sector leverage.
The application will then be independently scrutinised by the Industrial Development Advisory Board and/or the Independent Advisory Panel before advice is provided to Ministers. Ministers will make the final decision.
Funding of eRGF
No new funding is available for eRGF support - it is funded through any monies freed up from existing RGF budgets. This could be because a previously selected bidder has withdrawn their project or because during the contract negotiation, both parties agree to a lower RGF offer than was originally requested. In both instances the RGF money is recycled back into the Fund.
Standard RGF bidding rounds and eRGF
All approaches for eRGF support will initially be considered to see if they meet the ‘Urgency’ criteria and cannot wait for a standard RGF bidding round. Where the timetable for the next bidding round is not yet defined we will seek evidence around the urgency of the case and whether it is time limited.