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• Introduction
• General Conditions
• Eligible Costs
• Amount of Grant Aid
• Priming Grants - For Businesses Trading < 18 Months
• Business Expansion Grants – For Businesses Trading > 18 months
• Refundable Aid
• Equity Investment/ Preference Shares
• How to Apply
• Seed Capital Scheme
• Confidentiality

Introduction

County & City Enterprise Boards provide a range of financial supports designed to assist with the establishment and or growth of small scale businesses employing up to ten people. 

These include:

• Feasibility/Innovation Grants
• Priming Grants
• Business Expansion Grants
• Refundable Aid
• Equity Investment Options

These financial supports are designed to provide a flexible suite of supports aimed at assisting, through standard grants and refundable aid, the establishment of small-scale economic projects with the central objective of facilitating the creation and maintenance of sustainable jobs and the development of economic infrastructure at local level.  Additionally the Board will also seek to:

• Maximise the employment and value added potential of micro enterprises,
• Contribute to national competitiveness,
• Reduce dependence on traditional or declining economic sectors,
• Support greater participation of the unemployed and women in the promotion and development of enterprises,
• Provide employment opportunities in less developed and remote areas so as to achieve more enduring and value-added balanced regional development.

General Conditions
The general conditions for grant support are as follows:

• The sector of the economy in which an enterprise is operating or intends to operate
• The size or proposed size of the enterprise. CEBs can assist in the establishment, and/or development, of new and existing enterprises from individuals/sole traders, companies and community groups subject to the following eligibility criteria;
• The enterprise must be in the commercial sphere;
• The enterprise must demonstrate a market for the product/service;
• The enterprise must have a capacity for growth and new job creation;
• The enterprise must not employ more than 10 people.
• Any expenditure incurred, prior to receipt by applicant of the letter of offer from the Board, will not be eligible for grant support.

Eligible Costs
Financial Supports may cover business costs directly attributable to starting a new business or growing and developing a business, or for carrying out a Feasibility/ Innovation study, except payments to State Bodies.

Amount of Grant Aid

Overall the cumulative level of grants to a micro enterprise must not exceed €150,000 over a three year period.  The payments of all grants will be subject to enterprises reaching agreed milestones as per their business plans and the Board’s Letter of Offer.

Priming Grants - For Businesses Trading < 18 Months

A Priming Grant is a business start-up grant, available to micro enterprises within the first 18 months of start-up.  Priming Grants may be available for sole traders, partnerships, community or limited companies that fulfil the following criteria:

• Located within the CEB’s geographic area;
• A business which on growth may or may not fit the Enterprise Ireland portfolio;
• A business employing up to 10 employees
• A Manufacturing or  Internationally traded services business
• A Domestically traded Service business with the potential to trade internationally.
• A domestically traded services being established by a female returning to the workforce or unemployed persons where the potential for deadweight and displacement does not exist”.

The maximum Priming Grant payable must not exceed 50% of the investment or €150,000 whichever is the lesser.
Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally.

In all other cases, the maximum grant shall be 50% of the investment or €80,000 whichever is the lesser.

Subject to the 50% limit, a maximum grant of €15,000 per full time job created shall apply in respect of any employment support granted.

Expenditure may be considered under the following headings:

• Capital Items  These include fit out of workspace, office equipment, machinery, computer costs hardware & software etc (Note acquisition of building and purchase of mobile assets are excluded from grant aid).
• Salary Costs for 1st year of employment.
  This to be paid out in two instalments.  The first instalment at the commencement of employment and the second instalment once the employment has continued in existence for a period of six months. The level of grant support should reflect the salary scale proposed for the employment being generated.  It is anticipated that only quality jobs attracting salaries in excess of €40,000 will be eligible for the maximum €15,000 grant support with appropriately scaled back grants offered in accordance with proposed salary for lower paid positions. Staff recruitment costs may also be considered eligible for grant aid.
• Rental/Accommodation Costs. For 1st year of project. 
  (Note where rental space is already subsidized by an investment of public funds then grant support should reflect the differential between the market rate and subsidised rate).  Rental costs may be paid up front subject to receipt by the Board of signed lease/rental agreements. 
• Utility costs.  These include installation costs for telephone & broadband. 
  (Note mobile phone costs are excluded)
• Marketing costs.  These include packaging, brochures, business cards, trade fairs, website design and development, patent fees and other marketing initiatives.
• Consultancy Costs.  These include design fees, architect, accountant and legal fees.
• Business specific training.  Costs here refer to specialized management or key personnel training that are required to ensure the growth of the business. Such courses should not be generally available under the Boards general training programmes. 

Business Expansion Grants – For Businesses Trading > 18 months
The Business Expansion grant is designed to assist the business in it’s growth phase after the initial 18 month start-up period.  Micro enterprises that have availed of a Priming Grant are ineligible to apply for a Business Expansion Grant until 18 months after the final drawdown date of the Priming Grant, expect in exceptional circumstances.
Business Expansion grants may be awarded to sole traders, partnerships, community groups or limited companies that fulfil the following criteria:

• Located within the CEB’s geographic area;

• A business, which, on growth, may or may not  have the capacity to fit the enterprise Ireland portfolio
• A business employing up to 10 employees
• A Manufacturing or Internationally traded service business
• A Domestically traded Service business with the potential to trade internationally.

The maximum Business Expansion Grant payable must not exceed 50% of the investment or €150,000 whichever is the lesser.

Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally.
In all other cases, the maximum grant shall be 50% of the investment or €80,000 whichever is the lesser.

Subject to the 50% limit, a maximum grant of €15,000 per full time job created shall apply in respect of any employment support granted. 

Expenditure may be considered under the following headings:

• Capital Items  These include fit out of workspace, office equipment, machinery, computer costs hardware & software etc (Note acquisition of building and purchase of mobile assets are excluded from grant aid).
• Salary Costs for 1st year of employment.
  This to be paid out in two instalments.  The first instalment at the commencement of employment and the second instalment once the employment has continued in existence for a period of six months. The level of grant support should reflect the salary scale proposed for the employment being generated.  It is anticipated that only quality jobs attracting salaries in excess of €40,000 will be eligible for the maximum €15,000 grant support with appropriately scaled back grants offered in accordance with proposed salary for lower paid positions. Staff recruitment costs may also be considered eligible for grant aid.
• Rental/Accommodation Costs. For 1st year of project. 
  (Note where rental space is already subsidized by an investment of public funds then grant support should reflect the differential between the market rate and subsidised rate).  Rental costs may be paid up front subject to receipt by the Board of signed lease/rental agreements. 
• Utility costs.  These include installation costs for telephone & broadband. 
  (Note mobile phone costs are excluded)
• Marketing costs.  These include packaging, brochures, business cards, trade fairs, website design and development, patent fees and other marketing initiatives.
• Consultancy Costs.  These include design fees, architect, accountant and legal fees.
• Business specific training.  Costs here refer to specialized management or key personnel training that are required to ensure the growth of the business. Such courses should not be generally available under the Boards general training programmes.  

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Feasibility/Innovation Grants

Feasibility/Innovation Grants are designed to assist the promoter with researching market demand for a product or service and examining it’s sustainability.  It includes assistance with innovation including specific consultancy requirements, hiring or expertise from third level colleges, private specialists, design, patent costs and prototype development.

The maximum Feasibility / Innovation Grant payable for the S&E Region must not exceed 50% of the investment or €20,000 whichever is the lesser. The maximum Feasibility / Innovation Grant payable for the BMW Region shall be 60% of the investment or €20,000 whichever is the lesser.

In order to avoid unnecessary difficulties in processing feasibility study grant claims and to avoid abuse of the scheme the following conditions/changes were approved by the Tipperary North County Enterprise Board in addition to those already in place pertaining to retrospection, no other source of support, tax affairs, vouched expenditure etc.:

1. Applicants must satisfy the Board that a reasonable level of desk or other research has been carried out in advance of any application for assistance which should indicate that a potential market exists for the product or service. Information gathered to date should be summarised and submitted with the application.
2. Fee proposals/quotations should be submitted with your application.
3. The Grantee must submit a written report, acceptable to the Tipperary North County Enterprise Board, on completion of the study outlining the research carried out and the findings arising therefrom.

Expenditure may be considered under the following headings:

• Innovation Costs.  Costs under this category will include prototype development, innovative design, research costs, and third level college consultancy.
• Own Labour Research.  Costs under this category will include own labour involved in carrying out research/ prototype development.  The maximum amount chargeable under this category is €400 per week subject to the overall maximum under this category not exceeding 20% of the overall grant drawdown.
• Consultancy Costs.  These include design fees, architect, accountant and legal fees.
• Miscellaneous Costs.  This may include telephone costs, mileage costs at €0.26 per kilometre, subsistence & overnight costs, air travel etc.  The overall maximum drawdown in this category should not exceed 20% of the overall grant level.

Payment of Grant

• Payment is made on the basis of invoices and receipts submitted (net of VAT).
• Expenditure must be in accordance with the application as approved by the Board.
• A satisfactory Feasibility Study Report must be submitted to the Board prior to draw-down.
• Grants must be drawn down within six months of approval.
• Other special conditions imposed by the Board must be met prior to payment of the grant.

NOTE:

1. Approval of a feasibility study grant does not indicate any prior commitment on the part of the Tipperary North County Enterprise Board to grant-aid capital investment, which may arise from the research/study carried out.
2. On completion of the study, the promoter will submit to the Board a report on the findings of the study in a form satisfactory to the Board. Such report shall be treated as confidential and shall not be revealed by the Board to any third party without the Grantee’s written consent.

(Note payments to state bodies including local authorities are excluded)

Refundable Aid
The introduction of refundable aid from 1 July 2000 means that the Board is obliged to come up with a combined incentive package, including capital grants and refundable aid, which will meet the Department’s new criteria as detailed above. The following guidelines have been adopted by the Tipperary North County Enterprise Board in relation to the offer of refundable aid:

1. Refundable Aid will only apply initially to capital grants for investment in site development and buildings works and also the purchase of machinery and equipment.
2. The maximum repayment period is set at 36 months.
3. In exceptional cases the 36 month term may be extended up to a maximum of 60 months particularly in the case of community projects.
4. Interest will be set initially at 0% for all projects and these limits will be reviewed on an annual basis with provision for an overall upper limit of 6%.
5. Recipients of refundable aid will be required to execute a Deed of Covenant and Promissory Note with the Board before payment of the refundable aid is discharged.
6. It has also been determined that all repayments received under the Refundable Aid Scheme will be used by the Board exclusively to fund further advances of refundable aid in the future.

Equity Investment/ Preference Shares
This scheme enables companies that are in the growth phase of their development to raise capital through the scale of redeemable preference shares.  Generally repayment takes place over a period of three to five years.  A dividend may be payable, a moratorium on repayments may be offered and the promoter is required to source matching funding.

Boards are authorised to support companies through the purchase of shares, provided the normal criteria for eligibility and limits are met.  Any amounts representing dividends or other money received by the Board in respect of shares purchased, taken or subsequently sold under this heading will be retained by the Boards for local redistribution.

How to Apply:
In order to apply for financial assistance, a completed application form (Click here for application form) is required together with a business plan (or feasibility proposal) and supporting documentation. Business plans must include financial projections (minimum two years cashflow, trading accounts and profit and loss). Historic financial statements will be required in the case of existing businesses.

Intending applicants are advised to arrange a meeting with a member of the Board's staff in advance of submitting their application for guidance in completing the necessary forms etc.

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Seed Capital Scheme
The Seed Capital Scheme which is operated by the Revenue Commissioners (http://www.revenue.ie) provides for a refund of tax paid over a 5-year period, subject to certain limitations, to a person who invests in and takes up employment in a new company. The company must be involved in qualifying activities such as manufacturing, internationally traded services, certain tourist undertakings, research and development etc. The activity must be certified by a relevant agency confirming that it is a bone fide new venture and under the 1997 Finance Act the certification process was extended to include the County Enterprise Boards.

Confidentiality
Any discussions between Tipperary North County Enterprise Board and businesses/individuals looking for assistance are held in the strictest confidence.

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