Online Trading Vouchers

Online Trading Voucher Programme

With the trend ever increasing towards online spending it is estimated that only 23% of small Irish businesses are engaged in any meaningful way in eCommerce sales. For businesses employing less than ten people this percentage could be even lower. It is now believed that of online purchases made in Ireland that up to 70% of these are done in overseas markets.

There is now an urgency to ensure that businesses recognise that this is happening and that they are encouraged and supported to correctly respond to this digital reality.

In order to support this goal, the National Digital Strategy aims to get a further 2,000 businesses trading online by the end of 2015. To this end, the Department of Communications, Energy & Natural Resources (DCENR) has launched a Trading Online Voucher Scheme and has teamed up with the Local Enterprise Offices to deliver this to Irish business.

What is it?

The voucher is a financial incentive to small businesses to develop or enhance their ability to trade online. Under the scheme a qualifying business may apply for matched funding to a maximum value of €2,500 or 50% of eligible expenditure (exclusive of VAT), whichever is the lesser. Following approval of their application, a successful applicant can engage suppliers and upon completion of the work, submit a request for payment to the LEO in line with the terms and conditions of their voucher.

Information seminars will be available to prospective applicants to support them in their application process and it will be a condition of applying for the vouchers that applicants attend one of these seminars. At each seminar attendees will be informed of the purpose of the scheme and how best to use and get value from the application of the voucher.

The application process for the vouchers will be a competitive process.

What are the eligibility criteria?

The vouchers are targeted at businesses with the following profile:

Limited Online Trading presence
Less than 10 employees
Turnover less than €2m
Applicant business must be trading for at least 12 months
Business must be located in the area covered by this phase of the scheme i.e. within the remit of the participating LEOs.

What are ineligible projects for this scheme?

Companies with charitable status, commercial semi-state companies, trade associations and company representation bodies such as Chambers of Commerce are not eligible to participate in the scheme
“Not for profit” and social entrepreneurship applicants unless they operate in a commercial domain
Professional services specialising in IT type services who are already capable of trading online using existing in-house systems
Conferences and Seminars
Projects which are contrary to public policy;

www.localenterprise.ie

Let’s talk Business…….. 2

Duplication of support for projects which would be eligible for assistance from other State Agencies of EU funded Operational Programmes
Projects with employees in excess of 10 people
Projects deemed to be capable of proceeding in any event without scheme assistance i.e. deadweight
Projects essentially comprising importation and distribution.

What can the vouchers be used for?

IT consultation
Development or upgrade of an e-commerce website
Implementing Online payments or booking systems
Purchase of Internet related software
Purchase of online advertising (this purchase cannot make up any more than 30% of approved Voucher costs and can only be drawn down in one payment phase)
Developing an app (or multiplatform webpages)
Development of a digital marketing strategy
Implementing a digital marketing strategy
Training/skills development specifically to establish and manage an on-line trading activity.

What are the things the vouchers cannot be used for?

Development of brochure websites
Purchase of non-internet related software
Anything other than online trading related activity.
What else do I need to know about vouchers?
Voucher approval must be gained prior to incurring any expense
Own labour is not an eligible expense
Third party costs only will be considered
All third party/supplier invoices must contain proper business details (e.g. Tax and Business Registration details).
What is the voucher application and drawdown process?

Application

Read the terms & conditions
If satisfied you are eligible and wish to apply register to attend an information event
Attend information session
Submit copy of completed and signed application form in hard copy to your local LEO
Soft copy of completed application to be supplied by email to your local LEO;

Evaluation

Evaluation of applications will be conducted by each LEO who will make recommendations for approval
An evaluation committee will assess the applications and make recommendations for approval;

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A competitive process will be put in place to assist with selection process. Selection of successful applicant will be based on the following criteria:

Eligibility for scheme
Value added potential
Export potential
Job creation potential
Financial Sustainability - Record decisions and report to the Local Enterprise Office approvals committee

As part of the application process applicants will be required to attend a training session on how to use and get the best value for money from the voucher.

Voucher administration

If your application is successful, a letter of offer will be sent to you for you to forward to your preferred supplier.
The voucher is a letter of offer which is sent to the successful applicant
Letter of offer signed, accepted and returned
Successful applicant has three months to complete the work as per their application;

Drawdown

Payment will be made directly to the successful applicant upon satisfactory receipt of the following:

Applicant and supplier(s) sign declaration on the voucher and submit to Local Enterprise Office (LEO)
Applicant submits o copy of their Company Registration Office (CRO) registration o an up to date tax clearance certificate
The original invoice from the supplier(s), along with supplier(s) CRO and Tax Registration details when submitting claim for payment (only suppliers with these basic criteria in place are eligible)
Bank statement(s) showing proof of payment from the client company to supplier(s)
Declaration of project completion by supplier(s) - All work must be completed and paid for prior to claim.

Payments will only be made with relation to approved expenses which form part of this application form.

All successful applicants agree that they will allow reference be made to them in case study materials, which may be used to promote the voucher scheme more widely.

What is post-voucher reporting and how does it apply to me?

By accepting a Trading On-line Voucher, successful applicants agree to report on online trading from participation in the scheme, again in 6 months and at annual intervals up to three years thereafter. Reporting will include: jobs (new or reallocated), increased turnover, exports and/or domestic market expansion, reduced costs, expected follow on investment. This may be conducted by Local Enterprise Offices, Department of Communications, Energy and Natural Resources or approved independent evaluators.

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Suppliers will be required to report on the impact of their products and services supplied to the applicant business. Reporting will include how their product or service enabled trading on-line, improved business performance, reduced cost, opened markets etc.

Acknowledgements

The trading on-line voucher scheme is an initiative of the National Digital Strategy, developed and funded by the Department of Communication, Energy and Natural Resources on behalf of Government. It is being administered by the Local Enterprise Offices.

Further Terms Applications for assistance for expenditure incurred prior to grant approval are ineligible. The Local Enterprise Office reserves the right to refuse any application and the right to terminate this grant scheme at any time without notice. The approval of applications and the payment of all monies are dependent on the availability of resources under this scheme from the Department of Communication, Energy and Natural Resources. Applicants are advised to check availability of resources with Local Enterprise Office prior to applying. All applicants approved must draw down in full within three months of the date of offer, or in exceptional circumstances within four months (i.e. three months plus one month extension) as may be agreed between LEO and company. Failure to draw down all or any portion may result in automatic de-committal without notice, i.e. loss of voucher. The Local Enterprise Office may liaise/consult other agencies/local development programmes in relation to this proposal while respecting project confidentiality. Any false or misleading statement or the withholding of essential information from Local Enterprise Office (as determined by Local Enterprise Office) will result in cancellation of any grant approved under this scheme.

PLEASE NOTE: The Local Enterprise Office is not responsible for any disputes between the applicant and 3rd party suppliers. Therefore we recommend that you adhere to best business practice and get three quotes as well as carry out due diligence before selecting a supplier. Disclaimer – For the avoidance of doubt it is understood and accepted that it is the applicant companies who are selecting and entering into a contract with third parties. The State and its agents (including Local Enterprise Office(s), Enterprise Ireland or any Government Department) does not accept any liability whatsoever in respect of any deficit in or consequences arising from products or services procured by or provided to companies under this scheme. In submitting your application under this scheme you are confirming that you understand and accept this disclaimer.

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