What is a Feasibility Study Grant?

The aim of a Feasibility Study Grant is to help start-up companies or individual entrepreneurs with the cost of researching their proposed business or new business
idea to see if it could be viable and sustainable. The study should help the promoter to reach firm conclusions about their business idea and give them the information they need to draw up a full business plan.

The LEO will consider applications for feasibility study grants towards the development of innovative product / service ideas not already in the marketplace, where the promoter has already conducted extensive market research into the idea, but assistance is required to move the concept nearer to market readiness, and work is required to further develop the product / service prototype or delivery and it is expected that it will be market ready in less than 12 months.

Financial support will not be available for R&D type projects.

Can a feasibility study be used towards funding a study for a business plan or a product where there are already many competitors in the market place?

No, feasibility study funding cannot be used towards the development of general business plans. Feasibility study funding is only given towards the development of new and innovative product prototypes not already in the market place.

Who can apply for a Feasibility Study Grant?

Feasibility study funding is only given towards the development of new and innovative product prototypes not already in the market place.
Only businesses or individuals intending to explore the feasibility of a manufacturing or internationally traded service sector business may apply.

I plan on undertaking the research on the feasibility study myself. Are costs associated with paying myself eligible under this grant?

The LEO would expect that a lot of the ground work will have been undertaken by a promoter already before applying for a feasibility study grant. Some 20% of the overall grant drawdown attributed to labour may be eligible however, that is the maximum allowed. Own labour is generally only acceptable where the promoter has no other source of income.

What does the Feasibility Study Grant cover?

Feasibility Study Grants are designed to assist the promoter with researching market demand for a product or service and to examine the sustainability of that
product or service. The grant helps with innovation costs including specific consultancy requirements, hiring expertise from third-level colleges, private specialists,
design, patent costs and prototype development.

Grant expenditure may be considered under the following headings:

• Market Research Costs – to develop the business proposition
• Consultancy Costs – to include design fees, architect fees and legal fees
• Technical Development/Prototype/Innovation – toinclude prototype development, innovative design,research costs and third-level college consultancy
• Salary/Own Labour Research – costs include own labour involved in carrying out the Feasibility Study. The maximum amount chargeable is €400 a week subject to the overall maximum not exceeding 20% of the overall grant drawdown.
• Miscellaneous Costs – include telephone costs, mileage costs at €0.26 per kilometre, subsistence and overnight costs, air travel, and so on. Costs in this category relate specifically to Feasibility Grants. The maximum amount for these costs should not exceed 20% of the overall grant level.

The maximum grant payable will not exceed 50% of the investment costs of up to €40,000 or a direct grant €20,000 whichever is lesser. Feasibility study funding is usually 100% direct non repayable aid.

All feasibility study approvals must be completed and paid by the LEO within 9 months.

Innovation Vouchers

The grant can provide assistance with costs such as innovation including specific consultancy requirements, hiring of expertise from third level colleges, private specialists, design, patent costs and prototype development.

We also would refer you to avail of an innovation voucher, available only to registered limited companies, who wish to get third level institutes to undertake research work for them. More information is available here.