Essential Guide to Local Enterprise Office (LEO) Grants and Financial Supports

The Local Enterprise Office (LEO) exists to provide information and supports to new and growing businesses in Ireland. It operates a network of 31 dedicated branches. We have summarised the supports available and prepared a straight forward guide to each support.

The supports covered include;

1. Feasibility Study Grants

2. Priming Grants

3. Business Expansion Grants

4. Trading Online Voucher

5. Export Marketing / Micro Exporter Grant

6. LEO Innovation Investment Fund

1. Feasibility Study Grants

These are designed to assist start-up businesses or individual entrepreneurs with the cost of researching their proposed business or idea, with the goal of establishing if the business is viable and sustainable.

The study should allow the applicant to reach definite conclusions about their business idea, providing them with the information required to draw up a complete business plan.

The maximum Feasibility Study Grant payable for the S&E (South and East) Region is 50% of the investment or €15,000, The maximum payable for the BMW (Border, Midlands, West) Region is 60% of the investment or €15,000.

Grant related expenditure may be considered under five headings:

• Market Research

• Consultancy Costs –design fees, architect fees and legal fees.

• Technical Development/Prototype/Innovation –prototype development, innovative design, research costs and third-level college consultancy.

• Salary/Own Labour Research –own labour involved in carrying out the study. The maximum amount chargeable under this category is €400 a week.

• Miscellaneous Costs – telephone costs, mileage & travel. The maximum amount for these costs should not exceed 20% of the overall grant.

Eligibility

LEOs will consider making Feasibility Study Grants to applicants whose potential new business may be eligible to apply for further grant assistance from the LEO if the business goes ahead. Only businesses or individuals intending to explore a manufacturing or internationally traded service sector business may apply.

2. Priming Grants

Available to micro enterprises within the first 18 months of start-up, Priming Grants are effectively business start-up grants.

They must meet the following criteria:

• Located and operating within the LEO’s geographic area

• A business which on growth will fit the Enterprise Ireland portfolio

• A business employing up to 10 employees

• A manufacturing or internationally traded services business

• A domestically traded service business with the potential to trade internationally

• Need for money and having regard to deadweight and displacement

Grant related expenditure may be considered under the following headings:

• Capital items – fit out of workspace, office equipment, machinery, fixed technology costs, etc.

• Salary costs – for the first year of employment.

• Consultancy/Innovation/Marketing costs – packaging, brochures, business cards, trade fairs, website development, consultancy fees and other marketing initiatives.

• General overhead costs – utilities and rental or accommodation costs, etc.

The maximum Priming Grant payable is 50% of the investment or €150,000, whichever is the lesser.

All grants of a value greater than or equal to €40,000 or with a cumulative value of €80,000 over three years require Enterprise Ireland approval. Grants over €80,000 and up to €150,000 are the exception and only apply in the case of projects that demonstrate a potential to graduate to Enterprise Ireland.

In all other cases, the maximum grant is 50% of the investment or €80,000, whichever is the lesser. Subject to the 50% limit, a maximum grant of €15,000 per full-time job created applies in respect of any employment support granted.

It is important to note, that part of the Priming Grant is refundable i.e. grant money which must be paid back. The LEO’s Evaluation and Approvals Committee will determine the amount.

3. Business Expansion Grants

A Business Expansion Grant is intended to help a business in its growth phase, after the initial 18-month start-up period.

As with Priming Grants, Business Expansion Grants are open to micro businesses, and the same qualifying criteria applies.

Once again, the grant related expenditure is the same as that for Priming Grants, as are the rules regarding the maximum Grant payable. A portion of the grant will also need to be paid back.

A business that had availed of a Priming Grant will be ineligible to apply for a Business Expansion grant until 12 months after approval/drawdown date of Priming Grant. There is an exception to this rule in cases of exceptional merit and where less than the maximum Priming Grant was drawn down, and subject to the provisions in respect of 'De Minimus state aid'.

4. Trading Online Voucher Scheme

The Trading Online Voucher Scheme is designed to help small businesses. It gives financial aid of up to €2,500 to help companies trade online. Additional training and advice is provided, covering topics such as developing a website, digital marketing, social media and search engine optimisation.

To qualify for the scheme, businesses must meet all the below conditions:

• no more than 10 employees

• less than €2 million in turnover

• be trading for at least 12 months

• be located in the region of the local enterprise office to whom they are applying.

5. Export Marketing Grant / Micro Exporters’ Grant

The Export Marketing Grant comes from a limited export development fund open to micro enterprises. It is intended to help business which are seeking to expand into foreign markets.

This grant part-funds costs which can be incurred in investigating and researching export markets, e.g. exhibiting at Trade Fairs, preparing marketing material and developing websites specifically targeting overseas markets.

Grant Terms and Conditions:

• Covers 50% of eligible costs (net of vat) to a maximum of €2,500.

• Applications are restricted to businesses who can demonstrate the achievement of sales in the domestic market and who now wish to expand overseas. Evidence that the business has realistic prospects of achieving export sales will be sought.

• A full business plan is required. The plan must make specific reference to the business' export marketing plans and strategy. A copy of the most recent set of audited accounts (where available) together with a one-year projected P&L statement is required. All revenue figures provided must distinguish between sales in domestic and overseas markets.

• Only Third-Party costs qualify i.e. cost of work businesses have commissioned others to do. Quotations in respect of proposed expenditure must be provided.

• Applications must be made prior to any expenditure being incurred.

• Payments will be made to approved projects on receipt of proof of payment of all qualifying and approved expenses.

• Payment will be made on receipt of proof of payment of all approved expenses and successful applicants will be given a period of 6 months from the date of the letter of offer to drawn down an approved grant.

To qualify, enterprises must meet the below criteria:

• No more than 10 employees

• Be located within the geographic location of the Local Enterprise Office

• Operate in the commercial sphere.

• Capable of demonstrating a market for their proposed product/service.

• Be engaged in manufacturing or internationally traded services.

• Innovative with prototype products.

• Must not have received any funding for this proposal from any other source.

6. LEO Innovation Investment Fund

LEO has an overall investment fund of €1.5 million. This fund is distributed through the nationwide network of 31 Local Enterprise Offices, targeting Investor Ready LEO Clients who wish to start, grow, or develop innovative microenterprises.

Applicants apply online and will be selected to participate on a short highly focused Investor Ready Programme. This programme will work with Investor Ready LEO clients who typically will have short term investment requirements, to implement their innovative development plan. The programme will incorporate one-to-one mentoring to assist the promoter prepare an investor ready plan.

At the conclusion of the programme, businesses have the chance to make a formal pitch to an Investor Panel to potentially secure a LEO Grant Investment of €25,000 to fund their innovative business start-up or development.

Existing LEO M1 (Investment) clients with an innovative development plan which might include

• New Product Launch

• New Process Development

• New Market Opportunity

• Diversifying your existing marketing strategy

• Changing your Business and/or Revenue Model

• Introducing Brexit Proofing Measures to sustain the future development of your business

• Making an addition to your Management Team

Existing LEO M2 (Training, Mentoring, etc) clients trading for greater than 12 months

• Manufacturing businesses with innovative products or processes with potential to export

• Traded Services businesses who have an innovative service offering which has the potential to serve international markets

• All sectors are eligible to apply but priority will be given to new start-ups in the following sectors: Software/IT, Digital, Creative and Gaming, Food and Agri, Healthcare and Lifesciences, Traded Services included Fintech, Environmental and Cleantech.

Find out more:

Application deadlines vary depending on your local LEO and the grant or scheme which you’re applying for. For more details visit the links below.

Local Enterprise Office (LEO): www.localenterprise.ie

LEO Innovation Investment Fund: www.liif.ie

All information correct as of August 2017.

Are you hoping to avail of a LEO financial support? Do you need assistance with writing a business plan to go with your application? If so, please don’t hesitate to contact us at Irish Business Plans. We have over

ten years’ experience helping entrepreneurs develop their ideas and prepare professional business plans. We would be delighted to help. Get in touch to find out more.