What are the financial criteria for guarantees or loans?
As noted above, guarantees may potentially be provided to support the following investment areas directly linked to the project: • Research & development (basic, applied, and/or demonstration) • Capital expenditure • e.g. investment in new production facilities, new materials, prototyping, tooling, land and building costs – but in all cases linked both to the project and the projects duration • Staff costs linked to the project • Training costs linked to the project • Recoverable indirect taxes are excluded. The applicant must provide evidence of having exhausted private sector sources before seeking either a guarantee or a loan. An applicant would normally be expected to have a lender willing to provide a loan in conjunction with an HMG loan guarantee. In general, the Government expects to offer loan guarantees rather than direct loans, to share risk upon behalf of the taxpayer and extend levels of support. Applicants seeking loans must demonstrate why the project cannot be financed o
