LITTLE firms in York with BIG ideas stop here. This could be the moment where your dreams are fuelled with money.

By linking with the major banks, the York Technology Growth Scheme accesses at least £6.25 million of early stage capital to assist the growth of the York economy in the science and technology sectors.

The new scheme will provide businesses that are primarily in the technology sector in the Greater York area with funding of up to £250,000. Targeted will be early stage businesses with high growth potential and a viable business plan yet needing finance that would otherwise be difficult to access.

So... how will the York Technology Growth Scheme work? How will your Bright-Idea Ltd of Greater York go about turning its fine notions into profits?

Well, if you've tried other sources of funding and failed, like so many other small-fry (usually because you don't have security or a track record) contact York Business Development Ltd, the major funding partner in the new York Technology Growth Scheme.

Its experts, drawn from top accountants and business developers, will independently assess your venture for its eligibility to take advantage of the Department of Trade and Industry's Small Firms Loan Guarantee Scheme (SFLGS) then direct you to a bank to make a formal application.

No, you're not planning to use any of the loan money to buy out a company's shares, or buy out members of a partnership. And no, you're not intending to use the lolly to replace an existing loan and overdraft facility. Or to finance interest payments. So that's OK.

But you ARE planning to use the money to develop your business project, start up trading, expand or improve efficiency. Well that's OK too, but the expert panel will want to see your plan in detail and if you need help to tweak it they're available

And no. Bright-Idea has nothing to do with authors or music composers. It has no connection with banking or finance, travel agencies or transport, shipbuilding or steel. Nothing to do with betting and gambling, coal, most commission agents, forestry, taxi-hire or public administration.

Just as well because all these categories and a few more are ineligible for the Government-backed cash (although some concessions are being made for existing ventures which can prove they were hit by the foot and mouth crisis). So, let's look at your ideas...Sorry, the perpetual motion gadget you planned is theoretically wonderful but actually unworkable. But your "better spider-catcher", which lures the creature into a trap with sub-sonic mating call squeaks familiar to spiders is a sure-fire winner. So let's start with a business plan....

After a lot of tweaking, shaping and if necessary re-skilling you step into the bank and lo! The bank manager looks at your plan, thinks its wonderful and recommends you for the loan because he feels the bank can safely apply to the DTI for that vital guarantee.

The amount you will get will range from about £15,000 to £250,000, dependant on how long Bright-Idea Ltd has been up and running and its financial needs.

So, exactly how will this lolly be made available?

Funding will be provided as part equity, part debt. By way of equity investment, SFLGS loans will be topped up with additional funding from York Business Development Limited, from business angels, or from both.

The scheme will provide a range of business mentoring support for start-ups and young businesses pre-investment.

Angel investors or mentors will provide hands-on support, bringing extra skills to the business. Companies will be expected to involve their investors in the day-to-day running of the business.

Want to know more?

Contact any of the participating banks, namely Barclays, HSBC, Lloyds TSB, NatWest, Royal Bank of Scotland or Yorkshire Bank.

Or get in touch with Norman Whyte, of York Business Development Ltd, at The Fishergate Centre, 4 Fishergate, York YO10 4FB, telephone 01904 731562; or Ray Wynne, of Science City York, at 20 George Hudson Street, York YO1 6WR, telephone 01904 554611.

They are also the ones to contact for a confidential informal discussion about your project, and to explore if the scheme is an appropriate source of finance.

Extra information can also be found on the York Business Advice Centre and Science City York web sites at www.ybac.co.uk or www.sciencecityyork.org.uk

So how do you apply?

Applications should be made directly to YBDL, which manages the York Technology Growth Scheme. Its experts will assess your proposal before submission to your bank for SFLGS approval. Business advisers will guide you through the application process.

Updated: 09:22 Tuesday, May 21, 2002