NI Rural Development Programme

2014 – 2020

Priority 6

Promoting Social Inclusion, Poverty Reduction and Economic Development in Rural Areas

RURAL BUSINESS INVESTMENT SCHEME

Information Notes & Scheme Sheet

LAGAN RURAL PARTNERSHIP

ABOUT US

Lagan Rural Partnership is the delivery mechanism for Priority 6 of the Northern Ireland Rural Development Programme 2014 – 2020:Promoting social inclusion, poverty reduction and economic development in rural areas. The Partnership will deliver funding for projects in eligible rural areas within Lisburn & Castlereagh City and Belfast City Council areas.

The Northern Ireland Rural Development Programme 2014 - 2014 is part financed by the European Agricultural Fund for Rural Development (EAFRD) and is managed by the Department of Agriculture and Rural Development.

RURAL DEVELOPMENT CONTACTS:

Lagan Rural Partnership, Economic Development Unit, Lisburn & Castlereagh City Council, Island Civic Centre, The Island, LISBURN, BT27 4RL

Staff Details:

Padraic Murphy, Rural Development Manager,

Tel: 028 9250 9419 Email:

Melissa Cunningham, Rural Business Administrative Officer

Tel: 028 9250 9489 Email:

Peter Shortt, Rural Development Officer

Tel: 028 9250 9391 Email:

Emma Donaghy, Rural Development Officer

Tel: 028 9250 9389 Email:

Clodagh Miskelly, Rural Development Officer

Tel: 028 9250 9447 Email:

LAGAN RURAL PARTNERSHIP LOCAL ACTION GROUP BOARD
Local Action Group (LAG) Board Social Partners
Name / Council Area / Sectoral Background
John Andrew Nelson / Lisburn / Business/Rural Services
David Nelson Bryce / Castlereagh / Business /Agriculture
Diane Ewart / Belfast / Community
Barrie Elkin / Castlereagh / Farming
John Farr / Lisburn / Community / Farming
Jackie McQuillan / Lisburn / Community
Lynne McCabe / Lisburn / Business / Tourism
Nessa O’Callaghan / Lisburn / Community
Rachel Wilson / Lisburn / Business
Andrew Wilson / Lisburn / Business
Local Action Group (LAG) Board Local Government Representatives
Name / Council Area / Political Party
Councillor Margaret Tolerton / Lisburn / Castlereagh / DUP
Alderman Allan Ewart / Lisburn / Castlereagh / DUP
Councillor Uel Mackin / Lisburn / Castlereagh / DUP
Alderman William Leathem / Lisburn / Castlereagh / DUP
Councillor Hazel Legge / Lisburn / Castlereagh / UUP
Councillor James Baird / Lisburn / Castlereagh / UUP
Councillor Pat Catney / Lisburn / Castlereagh / SDLP
Councillor Tim Morrow / Lisburn / Castlereagh / APNI
Councillor Stephen Magennis / Belfast / SF

RURAL BUSINESS INVESTMENT SCHEME

The Rural Business Investment Scheme will provide investment support for the creation and development of micro and small enterprises (including farm diversification and private tourism businesses) in rural areas. All businesses applying will require a business plan to support their application at time of applying. The level of funding will be dependent on the businesses’ potential for growth in the short to medium term. The funding will primarily provide capital grants with some resource funds towards bespoke training and marketing.

The following is a list of the types of activity which might be supported:

  • Rural tourism activities, including some types of rural accommodation, tourism service provision, craft retail unit in front of a production unit, restaurants;
  • Construction, re-construction or establishment of workshops, factories, plants, premises and facilities for various activities such as repair of machinery; production and/or processing of non-agricultural goods and materials, plastics, sewage and refuse disposal, sanitation and similar activities;
  • Processing and marketing of some agricultural products (referred to as Annex 1) where the output is non food, not fit for animal consumption or a processed wood product;
  • Social service provision including construction, re-construction and/or modernisation of premises and area for carrying out the activities (childcare, eldercare, healthcare, care for disabled people, educational farms, etc.);
  • Development of crafts and handicraft activities;
  • Investments in leisure, recreational and sport activities developed by private businesses or social economy enterprise as an economic activity i.e. the business will be funded at the same intervention rate as private business (50%), any projects relating to sport must fit with DCAL’s investment strategy on sport;
  • IT activities, computer-based and electronic activities, e-commerce, online warehouse, etc;
  • Provision of services e.g. Architectural and engineering activities, accounting, book keeping and auditing services, technical services, industrial cleaning, veterinary and animal welfare activities, etc.
  • Marketing element which would include website development and information leaflets/ brochures.
  • Bespoke training is defined as any training not currently provided by a statutory body such as colleges, Invest Northern Ireland, Local enterprise Agencies or other council funded scheme.

Examples of Eligible Costs:

(Please note that this is not an exhaustive list)

a)The construction, or improvement of immovable property;

b)The enhancement (not including additional bed space) of existing bed and breakfast, self-catering accommodation with less than 10 rooms, hostels with less that rooms, guest house accommodation with less than 10 rooms;

c)Construction or development of caravan sites, campsites, pod sites or bunkhouse accommodation;

d)Thepurchaseofnewmachineryandequipment,uptothemarketvalueoftheasset;

e)Theprocessingofagriculturalproductsthatleadtoanoutputthatisnotforhumanoranimalconsumptionorawoodprocessedproduct;

f)Generalcostslinkedtotheexpendituresuchasarchitects,engineersandconsultationfees,feesrelatingtoadviceonenvironmentalandeconomicsustainability,includingfeasibilitystudies,theacquisitionofpatentrightsandlicences,uptoatotalmaximumof10%oftheeligibleprojectgrantamount.Feasibilitystudiesareeligibleexpenditureevenifthereisnoexpenditureunderpoints(a)and(b)aslongastheactivitywascapableofbeingsupported;

g)Intangibleinvestmentssuchasacquisitionordevelopmentofcomputersoftwareandacquisitionsofcopyrights,trademarks;

h)Marketingelementwhichwouldincludewebsitedevelopmentandinformationleaflets/brochures;

i)Bespoketrainingi.e.anytrainingnotcurrentlyprovidedbyastatutorybodysuchascolleges,InvestNorthernIreland,LocalenterpriseAgenciesorothercouncilfundedscheme;

j)Thepurchaseofsecond-handequipmentbymicroorsmallsizedenterpriseswillonlybeeligibleincircumstanceswhere:

-Itisidentifiedattimeofapplication.

-Theequipmenthasnotbeengrantaidedintheprevious7years.

-Thesecond-handequipmentisfitfortheproposedprojectactivity.

-Theequipmentisingoodqualityandwithenoughworkinglifetobeabletomeetthe5yearassetdurabilitytest.

-Itrepresentsasufficientadvantageintermsofvalueformoneywhencomparedwithnewequipment.

-Whereaprojectpromoterdisputesamarketvalueassessedbytheabovemethod,theymayobtain,attheirownexpense,anindependentvaluationfromacompetentengineerorplantauctioneer.InsuchcasestheLAGmustdecidewhichmarketvaluationshouldapply.

Examples of Ineligible Costs:

(Please note that this is not an exhaustive list)

a)Costsconnectedwiththe leasingcontract,such aslessor’smargin,interestrefinancingcosts,overheadsandinsurancechargesoranythingdeemedtobearunningcost;

b)InvestmentswhichareconsideredbytheLAGtohaveanunacceptablenegativeeffectontheenvironment(orproposedinvestmentfailstomeetenvironmentalregulations);

c)Thepurchaseofland,includingthroughleasingofpropertyaspartofaproject;

d)Replacementinvestments i.e.likeforlike and maintenance costsforexistingbuildings,plantorequipment;

e)Investmentsinnewbuildbedandbreakfast,self-cateringaccommodation,hotelaccommodation,guesthousesorhostelsoradditionalbedspaceinexistingones;

f)Lease-purchase/hirepurchaseofnewmachineryandequipment,

g)Purchaseandinstallationofrenewableenergytechnologies;

h)thepurchaseofcars,vans,motorcycles,bicyclesandanyotherformofpersonaltransport(forwhateverpurpose);

i)thepurchaseofvehiclesfortransportation(suchaslorries,buses,vans,minibusesoranyotherkindofvehicleusedtotransportormovegoodsorpeople);

j)TractorsandAgriculturalmachinery

k)Expenditureincurredorworkcommenced/goodspurchasedbeforetheletterofofferprojectstartdateoraftertheletterofofferprojectenddate;

l)Paymentsforgiftsanddonationsorpersonalentertainments(includingalcohol);

m)trainingi.e.anytrainingcurrentlyprovidedbyastatutorybodysuchascolleges,InvestNorthernIreland,LocalEnterpriseAgenciesorothercouncilfundedscheme;

n)Reprintingofmarketingmaterials;

o)Noaspectofanactivitybeingfundedshouldbepartypoliticalinintention,useorpresentation,orlikelytobeperceivedasdiscriminatoryongroundsofreligion,colour,race,genderordisability;

p)Statutoryfinesandpenalties,criminalfinesanddamages;

q)Legalexpensesinrespectoflitigation;

r)Anycostassociatedwithmeetingalegislativeorstatutoryrequirementforthebusiness;

s)ReclaimableVAT;

t)Improvements/refurbishmentofresidentialproperty;

u)Feasibilitystudiesforrenewableenergy;

v)Costsassociatedwithagriculturalproducts(knownasAnnex1products)wheretheoutputisforhumanoranimalconsumptionorisawoodprocessedproduct;

w)Traditionalretailbusinesses.

WHAT GRANT SUPPORT IS AVAILABLE?

Activity / Minimum Grant per Project Application / Maximum Grant per Project Application / Level of Support
New Micro Business Capital Grant / £5,000 / £30,000 / Up to 50% for the private sector and social economy sector
Existing Micro Enterprise Capital Grant / £5,000 / £50,000 / Up to 50% for the private sector and social economy sector
Existing Small Enterprise Capital Grant / £5,000 / £50,000 / Up to 50% for the private sector.

Within the SME category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover total does not exceed EUR 10 million.

A micro enterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover total does not exceed EUR 2 million.

MANDATORY REQUIREMENTS AT APPLICATION STAGE:

1. You must have a Business Plan (using Enterprise NI Template)

2. You must have full planning permission (if applicable)

3. You must have attended a LAG pre-application workshop

4. You must fully complete an application form that will be issued after the pre-

application workshop

5. You must provide the necessary quotations and / or tender information relating

to your project proposal

6. You must provide evidence of all match-funding

HOW IS YOUR APPLICATION ASSESSED?

All project applications will be assessed by Lagan Rural Partnership’s Local Action Group (LAG) Board on a competitive basis.

The LAG Board is responsible for the opening of calls for applications using a two stage process.

STAGE 1 – LAG PRE-FUNDING WORKSHOPS

All applicants must attend a pre funding workshop (Dates and times in application pack provided). The purpose of the workshop is to provide details around the scheme to be opened, including;

  • An introduction to the Scheme,
  • Eligibility criteria,
  • Application pre-requisites, planning permission, business plan, required number of full quotations/ tenders,
  • Registration and application process, and
  • Procurement procedures*

NB* Only quotations/tenders that have been obtained by the applicant following programme procurement guidance will be accepted (further information will be provided at pre-application workshops)

Funding workshops will be advertised using local press, posted on Lisburn & Castlereagh City Council’s website, email, social media and any business and community networks. Local Enterprise Agencies (contact details at foot of guidance) and other key stakeholders plus local banks and financial institutions will also be invited to provide attendees with as much relevant advice as possible.

All potential applicants must complete an expression of interest form (EOI) and return it to our office for feedback regarding eligibility (contact details on EOI form).

Any new business applying to the Rural Business Investment Scheme must also participate in the ‘Go For It’ programme (Regional Start Initiative) and complete the prescribed business plan template currently used by the ‘Go For It’ programme – currently Enterprise NI.

STAGE 2 – APPLICATION PROCESS

Following completion of the funding workshops, Lagan Rural Partnership will assess the expression of interest forms and provide applicants with formal feedback regarding eligibility and next steps within a reasonable timeframe.

If the project is deemed eligible, only applicants who have attended a funding workshop and registered their expression of interest form will be eligible to apply.

Potential Applicantswill then be advised regarding how to make an application online or by hard copy and of the opening and closing dates of the 2nd stage application call.

THE BUSINESS PLAN

As part of the application process, it is mandatory for all applicants to complete a Business Plan.

As already outlined above any new business applying to the Rural Business Investment Scheme must participate in the ‘Go For It’ programme (Regional Start Initiative) and complete the prescribed business plan template currently used by the ‘Go For It’ programme – currently Enterprise NI.

Existing business will also be required to use the Enterprise NI Business Plan Template which can be issued by our office after registration has been confirmed for one of the pre application workshops.

PAYMENTS

All grant payments will be made retrospectively by claim and no advances will be available.

LOCAL ENTERPRISE AGENCY DETAILS

Patricia McPolin

Lisburn Enterprise Organisation

Enterprise Crescent

Ballinderry Road

Lisburn
Co. Antrim

BT28 2BP

Tel: 028 9266 1160

Email:

Jennifer Baille

Inspire Business Centre

Dundonald Enterprise Park

Dundonald

Tel: 028 9055 7557

Email:

For information on ‘Go For It’ providers in the Belfast City Council area contact Tel: 0800 027 0639