SMALL ENTERPRISE GRANT SCHEME CRITERIA The purpose of the District Council’s Small Enterprise Grant Scheme is to help small businesses undertake capital expenditure which will result in the creation of new, permanent full time employment and/or the retention of existing local full time employment. The scheme is designed to assist either a business starting up, an existing business to expand, or a business moving into the District. WHO IS ELIGIBLE? Businesses eligible for financial assistance under the Scheme must comply with the following criteria: 1. Size of Business The business, whether new or existing should not employ more than ten full-time staff including the jobs of the founders, if wholly employed in the business. The business should not be a subsidiary of a larger company, or part of a group with more than ten full-time employees. Type of Business
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Although the grant is discretionary and individual cases are treated on their merits, normally consideration will only be given to the following types of businesses: Agriculture in respect of diversification schemes excluding bed and breakfast, tearooms, retail of produce, etc. Extraction and preparation of minerals, ores, fuels, etc. All types of manufacturing. Wholesale distribution excluding scrap and waste materials. Industrial service, or an activity of particular value to any of the above types of businesses. For example, maintenance, installation of industrial machinery, etc.
The following types of businesses are not eligible under the scheme: Retail distribution. Personal service, eg hairdressers, beauty therapists, dry cleaners, painters and decorators, children’s nurseries, residential homes, private medical practices, home typing, photography, photocopying, etc. Building contractors, joiners, plumbers, electricians and other associated trades. Garages, dealerships, motor vehicle repair, maintenance and servicing including learning, valeting and the hire of vehicles.
Professional services, eg accountants, legal and insurance services, estate agents, surveyors, architects, engineering consultants, computer consultants, marketing/advertising services. Provision of services and self-catering accommodation, eg extensions, conversions, or upgrading of existing accommodation in hotels, guesthouses, bed and breakfast establishments. Restaurants, snack bars, cafes, public houses and other eating places supplying food for consumption on or off the premises. Tourism related projects, which will attract visitors to the District, eg visitor attractions. Repair and hire of consumer goods. Sport and recreational establishments, eg sport centres and associated facilities, bookmakers, amusement halls, bingo halls, etc. Commission agents. Franchise operations.
If you are unsure about the eligibility of any particular business type, please contact the Economic Development Section on 01756 706213/706214. AMOUNT OF GRANT The amount of grant awarded is determined by the number of jobs created and/or safeguarded. Each new full-time job in a business, up to the fifth including the founder of a new start business, if wholly employed in the business is equivalent to a grant of £500. The maximum grant available is £2,500 which would be awarded to a business creating five new full-time jobs. Each local full-time job safeguarded, up to the fifth, in an existing business is equivalent to a grant of £300, available up to a maximum of £1,500 (ie five full-time jobs safeguarded). For example, the amount of grant awarded is calculated as follows: An existing business safeguarding two full-time jobs and creating an additional three full-time jobs would be eligible for and grant of £2,100 (ie £500 per new fulltime job and £300 per safeguarded full-time job). A new start business employing only the founder would be eligible for a grant of £500 (ie one full-time job created).
People taken on under Youth Training and other comparable Government training schemes will not be counted unless the job is for an existing participant of the aforementioned completing their initial training period. Part time jobs are not counted under the scheme.
In all cases, the total grant from public sector sources, including the District and Europe will not exceed 50% of total eligible expenditure. WHAT COSTS ARE ELIGIBLE Assistance is given towards capital expenditure which will result in the creation of new, permanent full-time jobs. This can include: Purchase and installation of machinery and equipment. Alterations to buildings. Purchase of motor vehicles if intrinsic to the future development of the business.
Assistance will not be given towards: Purchase of raw materials and stock. Operational costs, for example, rent, business rate, heating, stationary, wages, etc.
HOW TO APPLY Businesses wishing to apply for assistance under the Scheme should provide a Business Plan giving: description of the business’s activities, market, customers, market research, future plans etc. financial forecasts over a two year period. details of current personnel, the number of new jobs created and the nature of the work to be undertaken. details of capital expenditure including full costings. sources of other funding, eg private capital, bank loan/overdraft, other local authority or public sector assistance.
Please note that you can get free advice from the Craven Business Development Centre, 9 High Street, Skipton, Telephone 01756 701001. Applications should be verified and signed by a Business Advisor from a recognised agency. All information supplied will be treated as confidential. PROCEDURE All applications for assistance should be sent to the Economic Development Section at the address given below. Receipt of the application will be acknowledged in writing and a date given for when the application will be considered by the Regeneration and Development Committee.
The applicant will be notified of the Committee’s decision, in writing, within four working days of the decision being taken. If you have not been notified after this time please contact the Economic Development Section. If the application is refused, no reason will be given and no right of appeal is available. Pleas note that grants are offered entirely at the District Council’s discretion and an offer of grant assistance from another organisation/authority does not guarantee that an offer will be made by the District Council. Financial assessment will not be given towards capital expenditure incurred prior to receipt of the application by the District Council. Once you have received acknowledgement of the application, you need not wait for the Committee’s decision before proceeding with the planned capital expenditure. However, it is advisable to wait for the Committee’s decision, as the District Council cannot be held responsible for any expenditure incurred in anticipation of financial assistance from this Council. HOW TO CLAIM THE GRANT The grant is usually paid in one lump sum on the production of photocopies of receipts for expenditure on capital items for which the grant was requested and upon the proof that all conditions have been met. The offer of grant assistance is only valid for twelve months from the date of the offer. CONDITIONS The District Council upon offering assistance will request that the following conditions are adhered to and that acceptance of the offer, ie requesting payment of the grant will signify that you fully accept these conditions and will comply with them accordingly. That the grant be re-paid if the business (i) ceases to trade, except in the case of liquidation or bankruptcy, or (ii) re-locates to premises outside the District boundary within twelve months of receiving the grant. That a Progress Report be submitted after twelve months of receiving the grant. Intermittent reports may be requested during this time. If a report is not returned after twelve months of the request being made, you may be asked to repay the grant.
SUBSEQUENT APPLICATIONS It is possible for a business to receive subsequent grants so long as the business still meets all the requirements given above and that the grant is for new capital expenditure, and the creation of additional permanent full-time jobs. Normally, priority will be given to first time applicants.
Applications should be sent to the: Economic Development Officer, Craven District Council, Council Offices, Granville Street, Skipton, North Yorkshire, BD23 1PS. December 2004.