Applicant Guidance Notes - Flexible Business Support Grants
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1 Applicant Guidance Notes - Flexible Business Support Grants Introduction Gloucester City Council is actively encouraging a thriving local economy and, as a part of this, is looking to support new business start-ups and as companies looking to relocate to or expand in the city. Since our business grant schemes have been in operation we have received a number of grant requests from businesses which have been ineligible for funding for a variety of reasons but could nonetheless be considered as being of importance to the city (for example in terms of the number of new jobs created or brought to the city, or their contribution to improving particular aspects of the city s economy, etc). The City Council has therefore established a flexible business support grant scheme, with applications to be considered according to merit on a case by case basis. Grants are administered through the Economic Development Service. These notes provide an outline of the mechanism of the scheme, the eligibility criteria and the application process. The Grant Scheme PART A Flexible support for existing business with a business rateable trading address in Gloucester who are seeking to expand and employ additional staff This grant will provide a maximum grant of 1,000 per business employing a maximum of 50 existing staff. The grant funding is to be match funded (see table below for example) for businesses with a business rateable trading address within the city boundary of Gloucester who are seeking to expand. Funding will be awarded on a first-come, first-served basis. Amount required Business Gloucester City contribution Council Contribution 2,000 or more 1,000 1,000 Page 1 of 6
2 Eligibility Criteria In order for businesses to qualify for the Grant Scheme they must: Be located in Gloucester City Council s administrative area Be independent sole traders, partnerships, co-operatives, social enterprises or limited companies. Employ no more than 50 full-time (or full-time equivalent) employees at the time of application. Have a business rateable trading address within the city. Have a business plan that clearly demonstrates strong company growth projections. Evidence match fund requirement. Match funding must be in cash and not 'in kind'. The business does NOT qualify for a grant under ANY of the City Council s other available business grant schemes. Key issues for consideration: the number of new jobs the business is creating or bringing to the city; or is the funding helping the vitality of a local business with a certain number of city jobs; or is contributing to improving the evening economy offer, etc of the city. Businesses will NOT be eligible if: They are already receiving government subsidised funding (excluding small business rate relief). They are engaged in political activity or lobbying at any level or activity of an exclusively religious nature. They are engaged in activities where special European Community rules governing State Aid apply. General Conditions Only one grant is available per business. The Grant Scheme is supported and administered by Gloucester City Council via the Economic Development Service. Applicants have to be aged 18 or over and be permanently resident within the UK. The City Council reserves the right to recover all or part of the grant it has provided to the business if the business relocates outside of Gloucester City within a 2-year period from receipt of the grant, or the business ceases to trade for whatever reason. Employees and Members of Gloucester City Council and its economic partners are not eligible for the scheme. Page 2 of 6
3 All proposals and supporting documents must not infringe on any existing patent or copyright and therefore must be the property of the applicant. All applications will be dealt with in the strictest of confidence. Decisions on applications will be final and any award may be withheld at the discretion of Gloucester City Council. The council also reserves the right to vary the level of grant. Gloucester City Council reserves the right to publicise the details of any award of grant under the Grant Scheme, and will explore opportunities for marketing and promotion of the scheme, which may require recipient businesses being named as part of a media campaign. Only costs incurred following receipt of an offer letter may be eligible for grant support. Applicants will, typically, be seeking to achieve a demonstrable improvement in business performance by investing in projects that involve capital expenditure, marketing costs, or other significant project costs deemed by the council to be eligible. Gloucester City Council will provide only the minimum grant necessary to make the project happen, such need to be clearly demonstrated in the application. All applicants for grant funding must be able to demonstrate a business development project with measurable anticipated outcomes. The applicant must show a demonstrable need for grant assistance for a project that will materially develop the business in terms of job creation, increasing turnover, and/or access to new markets. It must also be shown that there will be no negative effect on other Gloucester businesses as a result of the assistance, for example a direct displacement of jobs. The grant can be used to fund: capital expenditure, for example equipment or minor building improvements; marketing costs, for example trade exhibition costs, website design/development; training costs; and a contribution towards other significant costs deemed to be acceptable by the council. Businesses are required to pay the full cost(s) associated with the project prior to any grant funding being released, and should consider the cash flow implications of this before applying. VAT registered businesses should not include the VAT element of any project costs in their application. Equipment purchased with grant support may not be sold or disposed of within two years of receipt of grant, unless a replacement item is being purchased. In any event the council s written permission should be sought in advance. Page 3 of 6
4 Any works that have commenced or been completed before the application has been made and assistance awarded will be ineligible. Gloucester City Council may be required to make an application or project proposal for council funding available for public scrutiny under the Freedom of Information Act. Applicants should make the council aware of any parts of their application or proposal which may prejudice its interest if it were made public. Additional conditions may be imposed on any applicant as may be considered appropriate by the council on a case-by-case basis. PART B Flexible support for home working businesses in Gloucester This grant will provide a maximum 500 grant for established home working businesses. Businesses can apply for a one off grant of up to a maximum of 500, which the applicant must match fund (therefore for a grant of 500 the applicant must provide a proven match funding contribution of 500). The maximum award will be 50% of eligible costs up to a maximum of 500. Businesses must evidence strong business growth Additional conditions for working from home grants: The grant will only be available to businesses which operate from home and must normally have been trading for at least six months The maximum award will be 50% of eligible costs up to a maximum of 500 Grants must be match funded by a minimum of 50% by the applicant and evidence of this must be provided. Match funding must be in cash and not 'in kind'. The business must provide the main source of employment for the applicant. The applicant must be the owner of the business and have all the necessary permissions and licenses to operate the business. Relevant checks may be undertaken on the premises where the business takes place. If these checks have not been complied with, then grant payment may not be made. Grants will only be paid after evidence is supplied of the approved expenditure (usually copies of paid invoices or receipts). Page 4 of 6
5 Advice and Guidance In administering the scheme, the Economic Development Service are keen to stress to applicants that they have access to a variety of business support mechanisms to aid applicants in, for example, searching for property, writing a Business Plan, or writing an Environmental Policy. Following successful grant awards, the Economic Development Service will maintain contact with the applicant over a two-year period and help nurture their development through the service s network of business contacts, while monitoring the overall impact of the Grant Scheme. Application Process If a business believes they are eligible for a grant they will need to do the following: Read the Applicant Guidance Notes. Complete the Expression of Interest Expression form and send this together with a copy of your business plan to the address on the form. If you do not have a full current business plan the online version of the Expression of Interest Expression form contains a web link for further information and example templates. Your information will be circulated to the Grant Review Panel, who will review the information contained in the Expression of Interest form and the Business Plan and based on this make a recommendation to the Economic Development Service. The Review Panel comprises professionals from business support organisations and the Commercial Business Banking sector on a rotational basis. Following a positive recommendation from the panel the Economic Development Service will forward a full grant application pack to the applicant. The applicant needs to complete the application form and return it along with the following documents: A copy of the company s Equal Opportunities Policy A copy of the company s Environmental Policy A signed copy of the SME declaration A duly completed copy of the City Council s Equal Opportunities Monitoring Form The applicant must hold a business or 'trading as' account. The application pack will also contain a Bank Reference Form, an instruction to the company s bank manager authorising the bank to provide the Economic Development Service with information confirming business account details/status. Applicants need to complete this form and send it to their bank rather than return it to the City Council. Page 5 of 6
6 Panel Reviews that result in negative recommendations will not proceed to the next stage of receiving an application pack. Instead the Economic Development Service will provide the applicant with the panel s detailed feedback on their business plan and details of further sources of information and advice to enable a sound business plan for the business to be developed. This can then be re-submitted to the panel to seek the positive recommendation needed to proceed as above. Applicants should be able to demonstrate a need for assistance to enable the business to succeed. All applicants should note that the Grant Scheme is subject to availability and funding and, if necessary, applications will be considered on a first come, first served basis. All applicants should be aware that a copy of their grant application will be passed to the City Council s benefits administration service for up-dating of records where appropriate. The decision to award the grant will rest with the Economic Development Service with awards being granted based on applications satisfactorily demonstrating that they meet the outlined criteria, conditions, information requests and priorities. The Economic Development Service s decision is final. Further Information For further information about any aspect of this funding scheme, or the other grants available please contact Gloucester City Council s Economic Development Service by (eds@gloucester.gov.uk) or call or or Page 6 of 6
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