Greater Lincolnshire Growth Fund (Free)

What is the grant available for?

In order to add value to the current (and planned) business support offer in Greater Lincolnshire, funding applications must be focused on;

  • Support for private sector businesses, of all sizes, operating in one of the priority LEP sectors; Agri-food, Manufacturing, Health and Care, Ports and Logistics, Visitor Economy, Low Carbon and Digital
  • Delivering transformational projects which align with the wider ambitions of the Strategic Economic Plan to help businesses across Greater Lincolnshire increase productivity and create new wealth and jobs
  • Applications that require between £150,000 and £500,000 in capital grant funding with provision of between 70 and 80% match funding from the applicant
  • Value added activity that will create new commercial opportunities and additional sustainable employment in Greater Lincolnshire. A successful applicant will need to create significant sustainable new jobs as well as provide further evidence of business growth measured in turnover, gross profits and net profits.
  • Eligible expenditure can include new investment in property infrastructure, buildings and refurbishment costs; plant, machinery & equipment and new disruptive technology (not an exhaustive list)
  • Projects which can start within 12 months of the award of funding

Grant Intervention and match funding

In line with the responsible use of public funds, applicants will be expected to provide match funding from their own resources and those of third parties such as banks, investors or MEIF.  It is proposed that;

  • maximum of 30% grant of total eligible expenditure will be provided for small and micro businesses, with up to 50 employees (resulting in a minimum project value of £500K);
  • maximum of 20% grant of total eligible expenditure will be provided for medium and large businesses, with 51 employees or more (minimum project value of £750K)

 

Percentage of Project Cost

Grant Intervention and match funding

In line with the responsible use of public funds, applicants will be expected to provide match funding covering as much of the project’s costs as they are reasonably able to, from their own resources and those of third parties such as banks or investors.  It is proposed that;

The percentage of project costs required to be provided by the applicant is variable and assessed by the grant panel on an case by case basis however, the following applies:

  • A maximum of 30% of total eligible expenditure will be provided for small and micro businesses, with up to 50 employees (resulting in a minimum project value of £500K);
  • A maximum of 20%  of total eligible expenditure will be provided for medium and large businesses, with 51 employees or more (minimum project value of £500K)

Eligibility Criteria

There is sectoral and state aid eligibility criteria for the Growth Fund:

Sectoral

The following sectors are ineligible for support:

  • fishery and aquaculture sectors 
  • primary production, processing and marketing of agricultural products
  • the coal, steel and shipbuilding sectors (excluded by the General Block Exemption EC 800/2008)
  • the synthetic fibres sector (excluded by the General Block Exemption EC 800/2008).  Further explanation of the meaning of synthetic fibres sector can be found on the European Commission website at http://ec.europa.eu/competition/state_aid/legislation/archive_docs/96c94_en.html   - Code on Aid to the Synthetic Fibres Industry (1996, subsequently extended.)
  • Banking and insurance businesses can not be supported, as their activities are non- productive and support to one institution is likely to lead to displacement of jobs, except as a deliverer of services or match funding, for example as members of a VCLF consortium.
  • Establishments providing generalised (school age) education should not be supported as this is a statutory duty on local authorities.

State Aid Eligibility Criteria

Small and Medium Enterprises (SMEs) - SMEs will be supported under the De Minimis State Aid Exemption 

De minimis aid can provide up to €200,000 of funding over a 3 year fiscal period to businesses which meet the definition of an SME (A firm that is part of larger group may need to include staff headcount/turnover/balance sheet data from that group too). Further information can be found:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/607691/bis-15-148-state-aid-manual-update.pdf

Larger businesses in assisted areas with in excess of 250 employees may be eligible for grant support and these will be considered on a case by case basis). They will be supported under one of the following State Aid Exemptions:

Focus on commencement of a new economic activity into the area, including movement of an activity from one area to another, for example the development of a Centre of Excellence. 

Though focused on research and development, can also cover materials, consumables and personnel costs relating to research and delivery of a scheme.

Applicants will, at full application stage, be expected to provide independent professional advice as to how their application will meet the State Aid eligibility criteria and under which exemption

 

Delivery targets and required outcomes

Applications will be appraised by the LEP Investment Board on a case by case basis.  Applications are welcome from businesses who can deliver transformational projects which align with the wider ambitions of the GLLEP Strategic Economic Plan by increasing productivity and create new wealth and significant jobs.

Associated application costs:

The applicant will not incur any costs at Expression of Interest stage. The applicant will only incur a cost once they have been invited to full application. The applicant will need to seek independent State Aid advice and submit this confirmation along with their full application.  There is a variable fee associated with this independent service, which will depend on the service provider.

Prior to submission of the full application, the LEP will commission an independent due diligence exercise on the applicant.  The fee, which is covered by the applicant, is based on the level of grant requested:

Grants of £150,000 - £250,000 = £2,500 + VAT
Grants of £250,001 - £375,000 = £5,000 + VAT
Grants of £375,001 - £500,000 = £10,000 + VAT

Grant amounts available

Grants are available between £150,000 and £500,000

Who provides the grant?

The grant is provided through the Greater Lincolnshire LEP

How to Apply

Applicants will complete an Expressions of Interest and move on to full application if invited to do so.

Expressions of interest are now welcome.  

Contact:
Michelle Davis

Telephone numbers:
01522 837269

Email:
growthfund@greenborough.com

Contact Information:

Contact:
Michelle Davis
Russell Copley

Address:
E25, Enterprise@Lincoln
Rope Walk
Lincoln
LN6 7DQ

Telephone numbers:
01522 837269
01332 608243

Email:
mdavis@greenborough.com
rcopley@greenborough.com

Website:
www.greenborough.com