What are the scheme criteria?
Your project will be assessed against the Department for Business, Innovation and Skills basic criteria:
The location of your project
GBI is now available to small and medium-sized enterprises across the whole of the region. However, large businesses can only apply if their project is or will be based in the region’s Assisted Area.
Your need for financial support
Your project must require financial support in order to go ahead as planned. This may be to reduce the risks associated with the project or to influence the location of a project. Financial support may also be needed to secure parent company or shareholder approval if you are a large business, allowing the project to meet established investment criteria. Each case is considered on its own merits.
You should not have made any irrevocable commitment to the project prior to your application, as otherwise there will be difficulty in establishing a need for support. A formal offer of support must have been made before you enter into a commitment to go ahead with the project.
The eligibility of your investment
Your project must involve capital expenditure on fixed assets, such as land and buildings, plant and machinery. These assets can be purchased outright or by using lease finance or hire purchase. Some property leases may also be eligible. Certain non-recurring costs may also qualify, for example patent rights or professional fees.
The working capital spent on a project does not directly qualify, but may be taken into account when determining the need for support.
Your project will be monitored for a minimum of five years through to completion of the investment and beyond to ensure the conditions of the formal offer of support have been met.
The type of jobs created and secured
Your project must create new jobs or safeguard existing employment. The more your project increases skills and involves investment in the skills base, the more value will be placed on this criterion when considering support.
Whether your project is competitive, profitable and viable
Your project should be viable and help your business become more competitive. Projects are usually expected to become profitable and contribute to the overall profitability of the business within three years.
The wider impact of your project will also be assessed, particularly its likely effect on existing businesses and the economy as a whole.
You will need to provide information regarding the size of your market and your existing and expected market share. You will also be asked for details of your main customers, competitors and suppliers, including their locations.
The quality of your project
It is intended that the majority of support offered by emda will be focused on high quality, innovative, knowledge-based projects that provide skilled jobs.
Apart from a small proportion of cases that have significant employment benefits, the emphasis is on raising productivity and improvement in the skills base.
Productivity growth will be measured on the basis of Gross Value Added (GVA) per full-time employee and benchmarked against sectoral and national averages. To complete the ‘GVA test’, click on the link.
In terms of improving skills, projects will be expected to provide the majority of jobs at NVQ Level 2 and above. To complete the ‘Skills test’, click on the link.
The regional and national benefits
Your project should contribute positive benefits to both the regional and national economy. Applications will be assessed for their impact on existing businesses and investment within and outside of the region.
Links:
Downloads on:
The GVA test [File type: MS Excel, File size: 28 KB]
The Skills test [File type: MS Excel, File size: 22 KB]
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Grant for Business Investment (GBI)
