The Greater Lincolnshire Growth Fund has been created to support the private sector businesses operating in one of the LEP's priority sectors and to add value to other existing funding streams.
£2,925,000 of grant funding is available to both Small and Medium Enterprises (SMEs) and larger businesses within the Greater Lincolnshire area who can deliver transformational projects which align with the wider ambitions of the Strategic Economic Plan.
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, 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;
A 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)
A 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)
The business must have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro.
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
- 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
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 here.
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:
- Article 14 – 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.
- Article 25 – Research and Development Aid. 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.
Any required delivery targets / outcome required
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 are available between £150,000 and £500,000):
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
This fund is managed and delivered through the Business Lincolnshire website.
Contact: Michelle Davis - firstname.lastname@example.org or 01522 837269.