The government has published its proposals to replace the gap funding regime, part of the Partnership Investment Programme, following an EC ruling that gap funding was anti-competitive. It proposes a number of new schemes that will increase the capital available and partially re-introduce gap funding: <p></p><p>&amp;• increased funding to the regional development agencies for regeneration</p><p>&amp;• gap funding re-introduced in Assisted Areas for all schemes </p><p>&amp;• gap funding also available to small and medium sized enterprises (SMEs) throughout the country (an SME is defined as having fewer than 250 employees or a turnover of less than £30 million). The government is now working on a more comprehensive replacement scheme that could fully re-instate the old gap funding regime without infringing EC rules.</p><p></p>