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Business Diversification Fund - North Lincolnshire

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What is the grant available for?

The North Lincolnshire Business Diversification Fund’s prime objectives are to safeguard jobs in the Visitor Economy sector and create new jobs through business diversification. Its aim is to help support those businesses looking to diversify from their existing model to improve sustainability and continue delivery of services in a new scope.

Percentage of project cost

The maximum grant level per applicant is £7,000 grant per new job created and £6,000 per job safeguarded. The minimum grant level is £1,000.

The Business Diversification Fund must maintain an overall investment ratio of at least 1:4 which means for every £1 invested through the fund, the applicants must contribute a minimum of £4 towards the project.

The investment ratio will be considered as part of the appraisal process and is governed by UK Subsidy Allowance Rules which may require a higher contribution by applicants to ensure compliance.

The Investment made by the fund must be maintained in the region for a period of up to 5 years (up to 3 years for SMEs) after its completion.

Any eligibility criteria

Subject to UK Subsidy Allowance Rules (influenced by company size/status and location), investment from the Support Fund Programme can be used to contribute to one or more of the following activities:

  • Diversification of the output of a Visitor Economy establishment into new additional products, or a fundamental change in the overall production process of an existing establishment. This may include capital expenditure on the acquisition or creation of
    fixed assets including:
        Refurbishment of existing structures or their associated fixtures and fittings
        installation or replacement of plant and machinery
  • Commissioning of professional advice to develop and implement Growth and/or Diversification Plans (through the Support Programme)
  • Additional costs of adapting premises, employing staff to assist disabled workers,
    adaptation of equipment, costs of establishing any sheltered employment facility.

Job safeguarding and job creation:

One of the key requirements of the Business Diversification Fund is to help companies in the Visitor Economy sustain employment levels and the creation of new sustainable employment.
To be considered an eligible cost, for the purposes of the Business Diversification Fund, new employment must be directly created by an investment project and fulfil the following conditions:

  • employment shall be created within 6 months of project completion.
  • the investment project shall lead to a net increase in the number of employees in the establishment concerned, compared with the average over the previous twelve months; and
  • the employment created shall be maintained for up to two years.

Please note the project must be practically and financially complete by March 2022.

Specific Ineligible activity

  • Investment in sectors included within the EC Sectoral Restrictions
  • Expenditure on the purchase of transport equipment (movable assets) and for the acquisition of road freight transport vehicles.
  • The Business Diversification Fund cannot be used to support undertakings or firms in difficulty.
  • Applications made by the retail sector for retail activities.
  • Applications involving hospital or medical services and residential care are ineligible for assistance.
  • Applications for projects in the defence sector are ineligible for assistance.
  • Projects by schools or colleges
  • Projects involving the manufacture of tobacco related products.

Who provides the grant?

North Lincolnshire Council

How to apply for the grant?

To start the application process for this fund, you will need to complete an expression of interest document.

Timetable

  • Wednesday 21 April 2021 – Expressions of Interest Open.
  • Wednesday 19 May 2021 – Expressions of Interest Close.
  • Wednesday 2 June 2021 – Latest date for businesses to be notified of outcome from Expressions of Interest.
  • Wednesday 2 June 2021 – Full Applications invited from successful businesses.
  • Wednesday 14 July 2021 – Deadline for completed Full Applications.
  • Wednesday 28 July 2021 – Latest date for businesses to be notified of outcome from Full Applications.
  • Thursday 31 March 2022 – All projects must be practically and financially complete.

To apply or find out more information please click here.

Additional information

Closing Date: 19/05/2021

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