Applications are now processed via Frontier Development Capital, an appointed representative of Finance Birmingham Limited.
The National Tooling Loan Fund supports component manufacturers and toolmakers to design, develop and manufacture tooling for their new and confirmed projects. It is a revolving fund open to eligible manufacturing businesses working in any sector, with investment available up to £2million.
- Investments designed to support toolmakers and component manufacturers.
- Supporting the creation of new jobs and safeguarding existing workforces.
- Available finance of between £50,000 and £2,000,000.
- Funds to contribute towards the design, development and creation of tooling or expanding tooling capacity.
- A firm order for tooling is needed, that originates from an Original Equipment Manufacturer (OEM), a tier 1 supplier or from further along the supply chain, with repayment due upon satisfactory completion of tooling.
- Terms and fees will apply. The cost of borrowing (interest rate) will be at a commercial rate of 7.5% over the prevailing base rate and an arrangement fee of 2%.
- Difficulty securing the required level of investment from existing finance providers.
- Security may be required in the form of a debenture postponed to existing finance providers.
- Final manufacture of the tooling and subsequent component production must be in England.
- New jobs need to be created and/or safeguarded in England, as a result of funding.
- Evidence of 2 years trading track record and proven ability to complete similar projects previously.