The new product, "Selective Finance for Investment in England", has replaced the RSA/EG in Tier 2 Assisted Areas within the SEEDA region. Under the new product there will be a minimum threshold for grant applications of £10,000. Applications of less than £100,000 will not require job creation or safeguarding to be eligible for support.
The key changes the new product is aiming to secure, in addition to the existing criteria, are growth in productivity, measured by Gross Value Added (GVA) per Full Time Equivalent (FTE) employee compared to the sector and national averages; and higher skills, with the majority of jobs required to be at NVQ level 2 (or equivalent) and above. Scope remains to continue support for a small proportion of projects which do not meet the new criteria but which are judged to be of value because of their gains for regional employment, but this will be limited.
The Tier 3 grant scheme will operate similarly to that currently available under Enterprise Grant. The grant maximum in Tier 3 areas is being increased from £75,000 to £100,000. Applications will not require job creation or safeguarding to be eligible for support but will be focussed on high quality projects.
All SFI applications are assessed against the following criteria:
The project must be undertaken within one of the Eligible Areas:
Companies located or seeking to relocate to the
Dover District are eligible to apply for tier 2
grants except in the local authority wards of Ash, Little Stour
and Woodnesborough-with-Staple.
Click to enlarge
Companies located or seeking to relocate to any of the Dover local
authority wards are eligible to apply for tier 3
grants.
Click to enlarge
Applicants must demonstrate that a grant is necessary to enable the project to go ahead as planned. This may be to reduce the risks associated with the project, to influence the choice of a mobile project's location or for some other reason. There must be no prior commitment to the project otherwise there will be difficulty in establishing a need for assistance. Project appraisal must have been completed and a formal offer of assistance issued before the applicant enters into a commitment to proceed with the project.
The project must involve expenditure on fixed assets, such as property, plant and machinery. Assets can be purchased outright or by finance lease or hire-purchase terms. Some property leases may also be eligible. Certain costs of a non-recurring nature (patent rights, professional fees) may also qualify. Your project will be monitored for a minimum of five years through to completion of the investment and beyond to ensure the conditions of the offer have been met.
The project must create new jobs or safeguard existing employment if you are seeking support of £100,000 or more. The more your project increases skills and involves investment in the skills base, the more value will be placed on this criterion when considering support.
Your project should be viable and help your business become more competitive. The project will normally be expected to become profitable within three years.
It is intended that the majority of support should be focused on high-quality, innovative, knowledge-based projects that provide skilled jobs. Apart from a small proportion of cases that have significant employment benefits, the emphasis is on raising productivity and improvement in the skills base.
Your project should contribute positive benefits to both the regional and national economy.
The greater part of the funding for the project should be met by the applicant or come from other sources in the private sector e.g. bank borrowings, lease finance, equity and loan finance. Additional public sector assistance may be available but may have to be cumulated with the SFI grant to ensure the total value of aid for the project complies with European Commission regional aid limits.
The European Commission restricts aid to certain sectors such as iron and steel, coal, synthetic fibres, vehicles and agriculture and fisheries. Similarly, support is not available for projects in sectors of the economy that are already fully served, as this will lead to overcapacity, damaging productivity. Projects which simply transfer jobs from one part of the country to another without significant increase in employment or growth in output are also ineligible for support. However, projects that deliver new technology and processes to these sectors may be considered on a case-by-case basis.
Support is not available for projects that are likely to lead to displacement of similar employment already present in the Assisted Area. Projects involving local services, for example retail outlets or restaurants, would be considered ineligible for support.
For larger projects, the potential displacement of employment will be considered at a national level.
To ensure your project qualifies, you will need to provide information regarding the size of your market and your existing and expected market share. You will also be asked for details of your main customers and competitors, including their locations.
For an initial discussion on the eligibility of your company and its project and an application form please contact the SFI Team on 01843 470107 or email clarejohnson@seeda.co.uk
For further information please visit the South East Grant Advisory Service website http://www.se-gas.co.uk/
Contact Economic Development:
E-mail: econdev@dover.gov.uk
Tel: 01304 872043
