Black Country Gold Frequently Asked Questions
Below are questions raised by attendees at the Black County Gold Launch Event on 17th February 2014 and the answers given together with some additional detail for clarification, the information here may help to resolve queries that you have.
1.Will businesses still be eligible to apply even if they have received grants from other sources?
Businesses can apply to BC Gold subject to State Aid rules which are that they should not have received public funding of more than 200,000 euros (approx. £167,000) over the previous 3 years, where a business is part of a group of companies then this figure applies to the group as a whole. Officers can provide guidance on State Aid issues.
2.Are start-ups eligible to apply to BC Gold?
There is a small amount of provision for support start-up businesses. The application process for start-ups is the same as for existing businesses in that applicants must complete an Expression of Interest form and an Application Form. Applicants should note the supporting information that must be submitted along with the application form and in particular the requirement to provide a Growth Plan and a detailed 12 month cash flow forecast, three quotations for each item of expenditure and evidence of a business bank account.
3.What does the business have to contribute to receive a grant?
The grant is provided on the basis that it accounts for 50% of eligible project costs up to the maximum sums allowed within the scheme, the remaining 50% is contributed by the business.
It is important to note that the grant is paid on the basis of defrayal which means that the business incurs and settles the project costs and is then able to claim the grant proportion. Businesses will need to provide invoices and bank statements to evidence that it has outlaid the finance.
4.The aim of BC Gold is to help businesses grow, what sort of growth levels are businesses are expected to achieve?
BC Gold is aimed at businesses that are projected to grow turnover by up to 19% in the first year after completion of the development project. The rationale for this growth rate is that businesses growing at 20% or more are eligible to receive support through the Growth Accelerator programme.
5.BC Gold is aimed at small and medium sized enterprises (SMEs), what is the definition of an SME?
An SME is a business that:
- Has annual turnover of less than 50m euros (approx. £42m)
- Annual balance sheet total of less than 43m euros (approx £36m)
- Has less than 250 employees
- Is less than 25% owned by another company or combination of other companies , where a business is more than 25% owned by another company or combination of companies then the group as a whole must satisfy the above criteria to be considered a SME.
6.Do jobs created in the supply chain count as outputs?
Ideally the jobs should be created directly in the business although we will consider indirect job creation i.e. jobs created in the supply chain.
7.Do businesses need to have been rejected finance by banks in order to apply for a grant?
No, BC Gold is not a gap funding scheme.
8.Will claw back rules apply?
Yes, ERDF regulations prescribe a claw back period of 15 years where there is contravention of the funding contract.
9.Are there any administration charges payable by the business?
No
10.Is there a minimum grant?
Yes, the minimum grant is £1,000 which has to be match funded; therefore there is a minimum project value of £2,000.