‘Rural Businesses to benefit from £35m Government fund’.

1. E U G R A N T S – A L A S T H U R R A H ?

2. EU GRANTS
( S P E C I F I C A L L Y R D P E G R O W T H
P R O G R A M M E )
Introduction
RICHARD WADMAN
CORPORATE FINANCE DIRECTOR
E: RICHARD.WADMAN@PKF-FRANCISCLARK.CO.UK
T: 01872 246595

3. HOUSEKEEPING
@pkfFrancisClark

4.  RDPE Growth Programme (overview) – Andrew James, PKF Francis Clark
 State Aid and other “linked” points of legal interest – Tim Lane, Stephens Scown
 10 Tips to making a grant application – Andrew James, PKF Francis Clark
 Back to the Future: post Brexit – Tim Lane, Stephens Scown
 Special Guests…
Other news…
Q&A
AGENDA

5. RDPE GROWTH
PROGRAMME
Overview and a few points of detail: It’s a kind of Magic
ANDREW JAMES
ASSISTANT MANAGER
E: ANDREW.JAMES@PKF-FRANCISCLARK.CO.UK
T: 01872 24658

6. RDPE GROWTH PROGRAMME
 A grant administrated by RPA
 3 strands of the grant:
 Rural Tourism Infrastructure
 Food Processing
 Business Development
 Handbooks
 National and Local Priorities
 Cornwall and Isles of Scilly LEP area
 Eligibility…
 “Rural + Growth + Jobs”
 Deadline for EOI: 16 Feb 2020

7. ELIGIBILITY – 1 “RURAL”
 Location, Location, Location
 Rural businesses only
 unless F&D producer
 Rural is taken from Magic Maps

8. ELIGIBILITY – 2 “SIZE”
 Micro or Small (unless Food Producer)
Business Size No’ of FTE Annual turnover or balance sheet total
Micro Fewer than 10 and c£1.7 million
Small Fewer than 50 and c£8.5 million
Medium Fewer than 250 and c£42 million turnover OR
c£36.5 million balance sheet total
 However consider “linked” businesses

9. ELIGIBILITY – 3 “PROJECT COSTS”
 Project spend
 Capital expenditure
 Ineligible costs:
 Costs incurred before the project starts
 Marketing/ promotion
 Land
 Repairs of existing P&M/ buildings
 Like-for-like replacement
 Moveable fittings (beds)
 Salaries
 Cars & motorbikes
 Finance costs

10. WHAT CAN I POTENTIALLY GET?
 Claim back a grant (“free money”) after the expenditure is incurred on a claim
form if the project was approved before starting.
 Minimum grant is £20K
 Intervention rate (% of project costs reclaimed) depends on type of grant…
 Max grant depends on grant type
 A key priority: 1 FTE job for every £30K of grant (£150K grant = 5 jobs?)

11. WHAT CAN I POTENTIALLY GET? TOURISM
INFRASTRUCTURE
 More tourists to come and stay (especially outside of peak season)
 Maximum grant is c£170K (€200K - state aid de minimus)
 Examples:
 Visitor attractions (i.e. dry ski slope/ mountain biking tracks)
 Heritage museum
 Not business as usual or new visitor accommodation
 Look at national and local priorities!
Type of project Max intervention rate Min’ Spend
Commercial Up to 40% £50K
“Non-profit” making Up to 80% £25K
Generates no income Up to 100% £20K

12. WHAT CAN I POTENTIALLY GET? BUSINESS
DEVELOPMENT
 Rural business to grow and create jobs
 Intervention rate is 40%
 Minimum spend is £50K
 Maximum grant is c£170K (state aid de minimus)
 Examples:
 Investment in equipment/ plant and machinery
 Farm diversification: e.g., metal fabrications

13. WHAT CAN I POTENTIALLY GET? FOOD PROCESSING
(CORNWALL)
 For Food Processors to grow and create jobs…
 ….a lot of ‘if’s and buts’
 Raw and end products are on the ‘Annex 1 list’ (excluding fish):
 Intervention rate is 50% for Cornwall
 Max grant is £750K
 Raw materials are on the ‘Annex 1 list’ (excluding fish) but end products are
not:
 Under de minimus state aid (max grant £170K): Medium & Large up to 40%
 Under other state aid (max grant £750K):
 Small 45%
 Medium 35%
 Large 25% (caveats apply)
 Not on ‘Annex 1 list’… small businesses under state aid up to 45%

14. WHAT CAN I POTENTIALLY GET? FOOD PROCESSING
(CORNWALL)
 Examples:
 Expanding food cutting and packing facilities
 New milk processing facility
 Cold food storage – increasing shelf life

15. RDPE Growth
Programme– key legal
aspects
Tim Lane, Solicitor
Stephens Scown LLP

16. Stephens Scown
• 270 staff and 50 partners across our three
offices in Exeter, Truro and St Austell
• A law firm with a regional focus but all the
benefits of a big city rival
• Personal and business services
Tim Lane
Solicitor
t.lane@stephens-scown.co.uk
01872 265142

17. Key legal aspects
o State Aid
o Ongoing compliance
o Linked organisations
o The guarantee

18. RDPE GROWTH
PROGRAMME
10+ tips in connection with grant applications
ANDREW JAMES
ASSISTANT MANAGER
E: ANDREW.JAMES@PKF-FRANCISCLARK.CO.UK
T: 01872 24658

19. GRANT APPLICATIONS - TOP TIPS
1. Project?
2. Eligibility?
 Applicant - activity and location
 Project
3. Timescales?
 Can not start project before you
have Offer Letter
4. Resources?
 “Free Money” but costs to access
grants and administer post Offer
 Grants paid in arrears
5. Project meets priorities?

20. GRANT APPLICATIONS - TOP TIPS
6. Answer the questions/ Provide the information requested
7. Words = numbers? E.g.,
 Jobs created
 Capital spend
 Growth
8. Procurement
9. “Cross cutting themes”
 Equality, Environment etc
10. Projections
 Match funding?
 Working capital funding?
 Funding to cover project expenditure in advance of grant receipt?
 Contingency/ over-spend
11. Set aside time to answer questions
12. Use assistance available…

21. BE PREPARED – ASSISTANCE AVAILABLE

22. BE PREPARED – GRANT ASSISTANCE?

23. Grant Funding- Brexit
Readiness
Tim Lane, Solicitor
Stephens Scown LLP

24. Readiness for change
o What may happen?
o Rapid changes….
o to your regulatory
environment;
o to your market;
o To your supply chain;
o To your sources of finance.
All of this while trying to deal
with business as usual and
maintain your KPIs.
o "failing to prepare, you are preparing to fail." – Benjamin Franklin

25. What is going to prevent you achieving
your KPIs?
"Coming together is a beginning. Keeping together is
progress. Working together is success." --Henry Ford
• What do we know?
• What don’t we know?
• Funding
• Other contractual and commercial issues
• Corporate issues

26. The information in this presentation is intended to be general information
only and should not be interpreted as legal advice. English law is subject
to change so whilst Stephens Scown LLP seeks to ensure the
information contained in this presentation is up to date and accurate, the
law can change quickly and no guarantee is made as to its accuracy
which means the information should not be relied upon. Presentation
slides should not be viewed as an alternative to professional advice and
Stephens Scown LLP does not accept liability for any action taken or not
taken as a result of this information.
Disclaimer

27. EU GRANTS
Special guests and more..
RICHARD WADMAN
CORPORATE FINANCE DIRECTOR
E: RICHARD.WADMAN@PKF-FRANCISCLARK.CO.UK
T: 01872 246595

28. SPECIAL GUESTS

29. NEXT…
Q&A
Future breakfasts – 1st Tuesday of the month
• Family Business Connect
• Other
• Export, Block chain etc.
• Green Cornwall – January 2020
Future breakfasts – Sector specific / one off
• Food and Drink – September/ October 2020
Other events
• Finance in Cornwall – May 2020
• Festival of Finance – May 2020 (TBC)
And do not forget our blog, which contains details of
new funds/ sources of SME funding that come to our
attention, and our Finance in Cornwall factsheet
And we are sponsoring a number of event associated
with Health and Wellbeing, including…

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01202 663600
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