What is a Business Expansion Grant?
A Business Expansion Grant is designed to assist the business in its growth phase after the initial 18 month start-up period. Please read FAQs.
What does the Business Expansion Grant cover?
A Business Expansion Grant may be applied for to buy new equipment, help with direct business costs such as capital Costs, salary, utilities, marketing, consultancy costs, and so on.
Grant assistance is not available for the purchase of a building, land or mobile assets.
Grant expenditure may be considered under the following headings:
- Capital Items – Modifications and fit-out of workspace, office equipment, machinery, computer hardware and software.
- Acquisitions and construction of buildings and purchase of mobile devices and assets, including laptops and iPhones/smart phones/iPads, are excluded from grant aid. Laptops, where necessary, may be included but only in respect of high specification for specialist work e.g. graphics, CAD etc.
- Salary Costs – for the first year of employment. This money is paid in two instalments. The first instalment is at the start of employment; and the second after six months of employment. The level of grant support will reflect the salary scale proposed for the job being generated. Jobs attracting salaries of more than €40,000 will be eligible for the maximum €15,000 grant support. Lower-paid positions will receive a lower grant rate of €7,500. Please note that approved grants are to be used for their intended purposes. If salaries are being supported by the LEO, the detailed job description and contracts for the role need to be forwarded to the LEO before the funds can be drawn down.
- Consultancy fees, marketing initiatives, packaging, brochures, business cards, trade fairs, website design and development.
Priming Grant and Business Expansion Grants
If a business received a Priming Grant (start-up grant), it cannot apply for a Business Expansion Grant until 12 months after the date of approval of the Priming Grant. An exception to this might be made in cases of exceptional merit where less than the maximum Priming Grant was drawn down and provided the rules of ‘De Minimis aid’ are respected. De Minimis aid is small amounts of State aid granted to enterprises.
Who can apply for a Business Expansion Grant?
Micro enterprises (Limited Companies, Designated Activity Companies, sole traders, co-operatives and partnerships) employing up to ten full time equivalent can apply for a Priming Grant to help them get the business started within the first 18 months of startup.
Priority must be given to enterprises in the manufacturing or internationally-traded services sectors which, over time, can develop into strong export entities and graduate to the Enterprise Ireland portfolio.
The maximum Priming Grant payable is 50% of the investment or €150,000 whichever is less. Grants between €80,000 and €150,000 are the exception. However, only enterprises that clearly demonstrate a potential to graduate to Enterprise Ireland can be awarded grants of this size. In all other cases, the maximum grant is 50% of the investment or €80,000 – whichever is less.
Businesses can get 2 or more Priming Grants provided they are for separate projects and the targets and milestones in the previously approved Priming Grant project were achieved.
The cumulative level of grant aid to any eligible business must not exceed €150,000 over a three year period.
Eligibility Criteria
Application procedure
If you want to apply for a Business Expansion Grant, you need to contact your local LEO to discuss with a Project Officer. They will assess your eligibility.
Applications are considered on a case-by-case basis and the level of funding will be decided after the assessment.
Contact:
Priming Grants West - lisa.finn@leo.corkcoco.ie
Business Expansion Grants West - deirdre.omahony@leo.corkcoco.ie
Priming Grants North : kay.keegan@corkcoco.ie
Business Expansion Grants North : brian.flynn@leo.corkcoco.ie
The assessment will examine:
- Discuss how the LEO can provide supports to you at your stage of business & what are the most suitable supports to you.
- Business Performance & Future plans.
- the merits of providing grant support to your proposal;
- your need for financial support;
- any previous funding you have received;
- the availability of funding;
- the potential for employment and sales growth.
Any individual or business who wishes to apply must submit a completed online Priming Grant application form along with the following:
- Strong Business Plan - Please see Sample Business plans & Templates here
- Online Application Form
- Audited accounts – for existing businesses - 2 years if trading or current trading figures to date.
- Projected monthly cash flow & P&L accounts – 2 years
- Quotations (3 for any outsourced capital/marketing spend items over €5k, Public tendering or 5 quotes for items over €50k)
- Evidence of matching finance
- Tax Clearance Certificate Status / Verification
- Please note that there is a short 1 question (2 minute) video interview as part of the online application.
After you submit your application
If an individual or business wishes to make an application they will be requested to submit a completed online Priming Grant Application.
Additional information may be requested following this. When the LEO receives all the necessary information your application will be evaluated at the next available meeting of the LEO’s Evaluation & Approvals Committee. You will then be informed of the decision.
Expenditure incurred prior to an official written acknowledgement of your completed application will be considered ineligible for grant aid purposes. The official acknowledgement is not an indication that the application is eligible or will be awarded grant aid. The final decision on grant assistance is with the Evaluation & Approvals Committee of the Local Enterprise Office.
When can I access the grant funds?
If your application is approved, you can draw down your funding after you submit evidence of the expenditure detailed in your letter of offer. Also, any funding approved must be claimed within the time period on the letter of offer.
To claim any financial assistance approved, you must submit the following:
- Signed acceptance of offer / Supplier Forms & Bank Details Form
- Signed Contract of Employment for Salary grants
- Completed Grant Claim Form, original invoices & evidence of payment by way of bank statements
- Verification of current valid tax clearance certificate from ROS
- any other documents as set out in the letter of offer , i.e. insurance for capital items
- Please note that you cannot use your grant to pay for any expenditure incurred before you make the application. Start Date if approved is taken as date of Application.
What is ‘De Minimis’ aid?
Business Expansion grants are provided under the European Commission Regulation (EU) 2023/2831 on ‘De Minimis’ aid. De Minimis aid is limited amounts of State aid – up to €300,000 in any three-year period to any one enterprise. De Minimis aid is regarded as too small to significantly affect trade or competition in the common market. The amounts of grants are regarded as falling outside the category of State aid which is banned by the EC Treaty and, therefore, they can be awarded without reference to the European Commission. However, a Member State must track De Minimis aid and make sure that combined aid payments from all sources to one enterprise in any three-year period respect the €300,000 ceiling. Therefore, you need to provide details of all other grant aid that has been awarded to you or your company within the past three years. Please note that a false declaration to show a figure under the threshold of €300,000 could later mean that you would have to pay back the grant aid with interest.
Please note that you can now download your Business Expansion Grant Application Form As Gaeilge also:
- Application Form As Gaeilge - E-Form
- Application Form As Gaeilge - Print Form
