Funding available for MIA Members from UK Government

Lord Mandelson, Secretary of State for Business, Enterprise and Regulatory Reform in the UK Government, has written to the MIA’s CEO, Chris Aylett to outline schemes which aim to help some MIA members, and others in the UK motorsport business community, during these difficult times.

The Business Secretary’s temporary schemes aim to increase the flow of credit to SMEs (small and medium enterprises) which include many MIA members and UK motorsport and high performance engineering companies.

Chris Aylett sends out a simple message when he says…”These are most welcome and will certainly help many hard-pressed motorsport companies. UK companies should find out, urgently, whether they qualify for this special assistance. I urge all to TAKE ACTION NOW – do not miss out!”

From today, companies with a sales turnover below £25 million, have access to the Enterprise Finance Guarantee Scheme. Eligible companies have access to loans, from £1000 up to £1million, which will be guaranteed by the UK Government. The scheme can be used to free-up overdrafts by converting existing facilities into loans.

A Capital for Enterprise Fund of £75 million will allow the Government to invest in viable companies who seek equity, but have high levels of debt.

Under the Working Capital Scheme the Government will make available to banks, guarantees to cover 50% of the risk on new, and existing, working capital portfolios. Hence, as credit lines in these portfolios will be secured by this guarantee, this will free up capital for new lending to all UK businesses with an annual sales turnover of less than £500 million.

More Time to Pay for businesses experiencing cash flow difficulties is offered under the HM Revenue & Customs (HMRC) Business Support Service. This applies to tax, National Insurance, VAT or other payments owed or coming due to HMRC. Companies should call the Business Payment Support Line on 0845 302 1435.

Details, including eligibility criteria, are available from a single online portal businesslink.gov.uk/realhelp/finance or from the MIA on the-mia.com/news