The Business Expansion Grant, championed by Ireland’s Local Enterprise Office (LEO), stands as a valuable support initiative aimed at aiding businesses in their growth and enhancement endeavors following an initial 18-month start-up phase.
What does a Business Expansion Grant entail?
This LEO support initiative was developed and implemented to help businesses increase and improve their financial resources, empower all future progress, and boost their overall commercial awareness. Regardless of how successful a business or a new company might be, every organization requires certain financial assistance at some time in its growth, to assist with management systems, improve sales, generate income, and sustain commercial profitability.
The range of grant amounts varies, and according to the LEO official website, the Business Expansion Grant’s specifications show that:
- The highest Business Expansion Grant possible is 50% of the investment, or €150,000, whichever is less.
- All grants exceeding €80,000 and up to €150,000 are considered an exception. Grants of this size can only be given to businesses that clearly demonstrate the ability to transition to Enterprise Ireland (EI).
- Any employment assistance granted is limited to a maximum grant of €15,000 per full-time job established, subject to the 50% restriction.
- Any grant worth more, or equivalent to €50,000, or worth more than €100,000 in total, over three years period, requires approval from the EI (Enterprise Ireland).
What expenses are covered by the Business Expansion Grant?
There are few standards and concepts for different expenditures that are eligible, and which enterprises may employ and incorporate into their organizational systems, based on what they require the most, under the Business Expansion Grant program. These expenditures range from payroll charges to business-specific training, and according to the LEO website, they are divided into a few definite categories.
Capital goods
Capital goods include things like facilities, technology, equipment, vehicles, and work instruments. When it comes to the Business Expansion Grant, however, only commodities like office supplies, machinery, internet software, and similar items are considered grant-covered capital goods. The cost of acquiring a building or mobile assets is not covered by this program.
Employment expenses
This category of Business Expansion Grant is usually paid in two predetermined instalments for the entire first year of employment, with the first instalment directly paid when establishing employment and the second instalment compensated after 6 months of presence and preservation of the same employment agreement. Only higher-quality jobs with wages over 40,000 euros will be eligible for a maximum assistance grant of 15,000 euros, with the level of grant support reflecting the pay scale granted for that specific work position. Separate, smaller grants will be provided for all lower-paid positions that match those specified incomes.
Rental Expenses
This component of the Business Expansion grant is only available for the first year of the program, and all rental expenses can be paid in advance only if the Board secures and provides signed lease agreements.
Costs of Utilities
Installation expenses for telephone and internet are included in these charges, however, mobile phone expenses are not included and will not be delivered.
Marketing Expenses
Branding, pamphlets, promotional items, website development and design, all other marketing endeavours, and the construction of marketing strategies tailored to individual businesses are all included in these expenditures.
Costs of consulting and specific business training
Professional consultations include branding, architecture, accounting, and legal services, whereas specific business training includes highly specialized marketing or team cohesion programs designed for all employees within institutions to further educate and professionally empower themselves to ensure the business’s successful growth and development.
Who is eligible to receive a Business Expansion Grant?
A Business Expansion Grant is available to all micro-businesses that function in commercial sectors of business, are registered and established in the LEO region, have less than 10 workers, and demonstrate strong market demand for the services they provide. In addition to these requirements, these enterprises must have a high potential for growth and development in both domestic and international markets and the ability to create additional jobs without affecting current local businesses in the long term.
All enterprises in Ireland who submit for the Business Expansion Grant and fulfil all of LEO’s terms and regulations must also submit a Resume, quotations for the major costs, three quotes for any element of expense over €5,000, and the most current set of verified accounts in a concise and well-filled application. Your proposal will be examined at the next scheduled meeting of the LEO’s Evaluation and Approvals Committee once the LEO has received all of the information they require from you and your request. If LEO determines that you are a suitable candidate for an EI business grant and you obtain pre-approved funding, you may be confident that your firm will expand and flourish successfully and profitably in a short period.
Conclusion
When starting a new business in Ireland, there are many supports and grants available for new businesses. These could help to support and take off the startup.
However, the startup should have a solid business plan to get approval.
