EGF Information Sheet –Starting A Business
LAST CALL FOR APPLICATIONS FOR ASSISTANCE
What is The European Globalisation Fund (EGF)?
The EGF was set up in 2007 to provide workers in the European Union affected by mass redundancies with retraining and up-skilling opportunities. EGF support is specially available in Ireland to fund individual support for workers made redundant from SR Technics. The fund will assist in preparation for alternative employment. One of the areas that is supported through the EGF fund is Business Start Up. Your local County/City Enterprise Board will help you access the EGF fund for Business Start Up. Fingal County Enterprise Board will be administering the fund.
You are eligible for EGF assistance if you were made redundant by SRT after 12 February 2009. All PPS numbers are checked with EGF co-ordination unit in order to ascertain eligibility.
You can apply for a range of services that can be funded by the EGF. Grant assistance is available to business start-ups. You can also apply for various supports including Start your Own Business Programmes, Business Mentoring services, Management development training programmes. All of these services can be provided to you in the locality in which your business is or will be based, up to the closing date of the EGF scheme.
I am interested in Starting a Business. How do I access the EGF fund?
To apply for EGF funding to start a business, your local County/City Enterprise Board will provide support through business mentors, who will work with you on all steps of the EGF process so you are fully supported in your application. Your application must show that you will start a viable business.
The steps to apply are:
1. Contact your local County or City Enterprise Board to seek advice or assistance on completing the business priming grant application form;
2. Complete the EGF application form and submit it to your local CEB. It is important that you include your PPS number and a full business proposal;
3. Your PPS number is sent to EGF Co-ordination office to check you are eligible for the EGF fund.
4. The business proposal is presented to the EGF Business Start Up Evaluation Committee on your behalf. Some business start-ups may be recommended for funding, at the discretion of the Evaluation Committee. The committee will determine whether the project should be recommended for financial assistance and, if so, the level of grant aid available according to your business proposal. The recommendation of the Committee is presented to the Board of Management of your local County/ City Enterprise Board who will make a decision on approval.
Your EGF Grant Application has been approved. What happens next?
1. You will receive a letter of offer and terms and conditions outlining the total amount your grant has been approved for and the conditions of offer. You must sign this contract and send in to your local County/City Enterprise Board by the date highlighted in the letter of offer.
2. When we receive the signed contract we will put you in contact with a business advisor or mentor who will help you through the stages required to drawdown the grant and provide you with business development support.
When can I receive my grant allocation?
Important Note: As the EGF programme is now coming to an end, all grant approvals must be drawn down and completed by the 8th of September 2011. No time extensions will be permissible beyond that date. Applicants will need to ensure that ALL criteria for draw-down are complied with, including tax clearance certification etc.
All approved grants require a number of items to be submitted before cheques can be issued. To ensure this process is straightforward and clear for you, a mentor will work with you to answer all your questions.
If you have been allocated an employment grant, there is a checklist of items we require to process your grant. Once we have received these items, we can aim to expedite the payment of the grant, subject to conditions. Your mentor will take you through the checklist. Once we have received all the supporting documentation, we can issue a cheque for the grant amount.
If you have been allocated a capital grant or any other grant, there is a checklist of items we require to process your grant. Your mentor will take you through the checklist. Once we have received all the supporting documentation including invoices to show payments, we can issue a cheque for the grant amount.
FREQUENTLY ASKED QUESTIONS
How long do I have to apply and access the EGF fund?
The closing date for receipt of applications is 4 p.m. on Friday the 5th of August 2011.
Your application must be fully completed and include a business plan and all accompanying information. If your application is incomplete, it may not be considered.
You are strongly advised to submit your application in advance of that date, as all claims for drawdown must be submitted before the EGF closing deadline of 8th September 2011. Your local County or City Enterprise Board (CEB) will be in a position to assign a mentor to you, who will guide you through the drawdown process. It is important that you engage with your CEB as early as possible, in order to allow drawdown before the scheme closes. Late drawdowns cannot be facilitated under any circumstances and any amounts not drawndown will be de-committed permanently.
How much funding can I get? Is there a maximum amount?
There is not a pre-determined amount that you can apply for – the amount you are awarded depends on the application you submit. All business plans are treated on an individual basis by the Evaluation Committee and grant amounts are determined on basis of the business proposal.
As a general guide - Each applicant is awarded an amount on a cost per job basis. Typically this is up to €10,000 per new job, but may be more or less based on your specific application. Drawdown criteria apply and you will be informed of the conditions if and when your application is approved.
Can I draw down my grant prior to purchasing equipment?
You must purchase your equipment first and then be reimbursed. All eligible capital costs associated with your business start up are supported by up to 50% of the total cost as outlined in your business plan. Therefore if your equipment purchase costs €10,000, you will be awarded up to €5,000 in support of the cost. For any capital expenditure, you must purchase the eligible items first and then you will be reimbursed on receipt of invoices, proof of payment and other applicable “due diligence” checks.
Does the equipment purchased have to be new? Is Lease-hire acceptable?
Yes. Equipment purchased must be new and lease hire is accepted.
Can I draw down my grant prior to purchasing equipment, paying for advertising etc?
Employment grant allocations, which will be outlined in your contract, can be drawn down once your application has been approved. Tax clearance certification is required.
Grant payment for other items, such as capital items i.e. equipment purchase, utilities etc can only be issued to you once we have received your original invoices and evidence of payment etc.
All grant aid not drawn down by the 8th September 2011 will automatically be de-committed. No time extensions will be permitted under any circumstances.
I need a Van to operate my business. Is this supported?
Mobile assets e.g. vehicles, laptop computers etc are not supported.
I am interested in operating a franchise. Is this supported?
There is a cap on the amount of assistance available for purchasing a franchise. The amount available depends on the type of franchise, what area it covers and the type of business.
My business may require more funding than I initially thought / I need to take on an employee? Can I re-apply again later?
As this is the last call for applications, no further applications may be made beyond the closing date.
I am not satisfied with the amount of grant Aid I received? Is there an appeals process?
Yes. Please send a letter outlining your concerns to your local County Enterprise Board.
Will EGF funding affect my Jobseekers Benefit?
You cannot draw down monies provided by the CEBs or Enterprise Ireland from the EGF scheme and claim Jobseekers Benefit at the same time. You can draw down CEB and EI monies if you are on Short-term Enterprise Allowance. You will have to move to this scheme with the Social Welfare office. Same payments and duration apply as the jobseekers Benefit, but clarify with Social Welfare.
Can I be on Jobseekers Allowance and drawdown EGF funding?
No. You must be on Back to Work Enterprise Allowance or Back to Work Allowance.
Will EGF funding affect my Back to Enterprise/Work Scheme?
No. EGF funding for business start up does not affect your Back to Work Payments.
Can I take on an employee who is on Back to work Allowance?
No. An employee must not be in receipt of any social welfare payments.
Can I take on a part time employee using an employment grant? How does the employment grant affect their social welfare payments?
Employment grants are issued on a pro-rata basis, so a part time employee is awarded a lesser grant amount. You will need to discuss with social welfare if entitlements are affected.
I don’t have an accountant, how do I complete the letter of acceptance?
Contact your local County Enterprise Board and we will help you.
Can I apply for more grant aid from Enterprise Boards?
The grants available through the Enterprise Board are generally for businesses involved in manufacturing or internationally traded services. The business must show that there is potential to export. Businesses in the local services sector do not ordinarily qualify for this grant aid.
The EGF fund has a special exemption allowing support of service based business. Some businesses will not be funded, e.g. taxi services, property letting, etc., at the discretion of the Board.
How can I get in touch with my local County or City Enterprise Board?
Visit www.enterpriseboards.ie to find your local Enterprise Board. The following are the contact details of the local Enterprise Boards in this area:
Fingal County Enterprise Board, 23 Main Street, Swords, Co. Dublin; Tel: (01) 8900800; Fax: (01) 8139991; Email: info@fingalceb.ie; Website: www.fingalceb.ie
Chief Executive Officer: Oisin Geoghegan
Dublin City Enterprise Board, 5th Floor, O'Connell Bridge House, D'Olier Street, Dublin 2; Tel: (01) 635 1144; Fax: (01) 635 1811; Email: info@dceb.ie; Website: www.dceb.ie
Chief Executive Officer: Greg Swift
Meath County Enterprise Board, Enterprise Centre, Trim Road, Navan, Co. Meath
Tel: (046) 9078400; Fax: (046) 9027356; Email: mhceb@meath.com; Website: www.meath.com
Chief Executive Officer: Hugh Reilly
Louth County Enterprise Board, Quayside Business Park, Mill Street, Dundalk, Co. Louth; Tel: (042) 9327099; Fax: (042) 9327101; Email: info@lceb.ie; Website: www.lceb.ie
Chief Executive Officer: Ronan Dennedy