The aim of a Feasibility study grant is to assist a new start-up company or individual entrepreneur with costs associated with investigating the commercial viability of a new product or service and towards examining its sustainability. The objective is to enable the promoter to reach firm conclusions regarding the project’s viability and set out investor ready plans and financials associated with the new product or service.
Local Enterprise Offices can look to approve feasibility study grants in circumstances where the potential new business or service being assessed would on progression be such that it may be eligible to apply for grant assistance from the LEO.
In order to apply for a feasibility study grant, in the first instance it is necessary to speak to a representative from your local LEO to assess suitability and eligibility.
In applying for a feasibility study the promoter(s) should show that they have done sufficient preliminary research to establish that a full feasibility study is worthwhile and that there is a reasonable possibility that any project emerging following the study would have real job creation potential.
Applications are considered on a case by case basis.
Local Enterprise Offices (LEOs) can assist in the establishment and/or development of new and existing enterprises provided that such enterprises/projects are capable of attaining commercial viability and subject to the following criteria:
· The Enterprise must not employ more than 10 people
· The enterprise must be established, registered, and operate within the geographic location of the Local Enterprise Office
· The enterprise must operate in the commercial sphere
· The enterprise must demonstrate a market for the product/service
· The enterprise must have the potential for growth in domestic and/or export markets and also potential for new job creation without the risk of displacing existing local businesses
Only businesses/individuals intending to explore the feasibility of a manufacturing or internationally traded service sector business may apply.
How to apply for Feasibility Study Grant
Any individual or business who wishes to apply must submit a completed Feasibility Study Grant application form along with the following:
- a CV (for the main applicant),
- quotations for the key costs,
- 3 quotes for any item of expenditure over €5,000. (For any expenditure item costing less than €5,000, one verbal quote is required); and
the most recent set of certified accounts (in the case of existing businesses).
Please make sure your application form is completed in full.
What happens when your application is received?
The LEO will acknowledge your application, and an executive from the LEO may wish to meet with you to discuss it. You may be asked to provide additional information. When the LEO receives all the information they need, your application will be evaluated at the next available meeting of the LEO’s Evaluation and Approvals Committee. You will then be informed in writing of the decision.
Please note that your submission of an application or the official acknowledgement of your application 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 and 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. Any funding approved must be claimed within 12 months of date of approval.
The maximum Feasibility Study Grant payable is 50%/60% of your eligible expenditure or €15,000 whichever is less. Please note that the grant is 60% in the ‘BMW’ region (Border, Midlands, West) but 50% in all other regions.
To claim any financial assistance approved, you must submit the following:
• a signed acceptance of offer
• original invoices
• evidence of payment
• a written report on the feasibility study
• an auditor’s Certificate (if required)
• a claim form
• a current valid tax clearance certificate
• any other documents as set out in the letter of offer
Please note that a current, valid tax clearance certificate is needed to claim a grant. Please also note that you cannot use your grant to pay for any expenditure incurred before you make the application.
What is ‘De Minimis’ aid?
Feasibility Study Grants are provided under the European Commission Regulation on ‘De Minimis’ aid. De Minimis aid is limited amounts of State aid – up to €200,000 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 €200,000 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 €200,000 could later mean that you would have to pay back the grant aid with interest.
Irish application form for Feasibility Study Grant
Please note an Irish application form for the Feasibility Study Grant is available on request from the Local Enterprise Office.