Grant Criteria
All GBI applications are assessed against the following criteria:
Location
Projects must be within an eligible area which is determined by your project address:
- Small and medium sized enterprises (SMEs) can apply throughout the North East region. You should check your SME status by referring to the SME Self Declaration booklet below.
- Large enterprises can apply within an Assisted Area and you can check if you fall within an Assisted Area by using the BIS postcode database.
Need
You must demonstrate that a grant is necessary to enable the project to go ahead as planned. This could be to reduce the risks associated with the project, to influence the choice of a mobile project’s location or for some other reason.
Crucially there must be no prior commitment to the project otherwise it will be difficult to establish the need for assistance. Furthermore, the project appraisal must have been completed and a formal offer of assistance issued before any applicant enters into a commitment to proceed with the project.
Eligible investment
The project must involve expenditure on fixed assets, such as property, plant and machinery or create new employment. The working capital spend on a project does not qualify directly, but can be taken into account when establishing the need for assistance. Assets can be purchased outright or by finance lease of hire-purchase terms. HP/leased agreements must include an obligation to purchase the assets.
Your project will be monitored for 5 years at least, through the completion of the investment and beyond to ensure the conditions of the offer have been maintained.
Jobs / Skills
The project must create new jobs or safeguard existing employment. The skill levels and salary levels of project jobs are an important factor in determining grant support levels.
Viability
The project should be viable and help your business become more competitive. The project will normally be expected to become profitable within three years.
The quality of project
The quality of a project will be taken into account in determining grant support. A number of factors may be assessed to help us determine the quality of projects, for example:
- The level of wages, as compared to the average for the sector and region
- The content of R&D - is there any Research and Development investment involved in the project?
- Training and Development - is there high-quality training for staff, including the provision of skills beyond job requirements?
National and regional benefit
The project should contribute positive benefits to both the regional and national economy.
Other funding
The majority of funding for the project should be met by the applicant or come from other sources in the private sector, for example bank borrowings, lease finance, equity and loan finance. Additional public sector assistance may be available but may have to be cumulated with the GBI grant to make sure the total value of aid for the project complies with European Commission regional aid limits.
What type of project does not qualify?
The European Commission restricts aid to certain sectors such as iron and steel, coal, synthetic fibres, vehicles, and agriculture and fisheries.
Similarly, support is not available for projects in sectors of the economy that are already fully served, as this will lead to overcapacity, damaging productivity.
Support is not available for projects that are likely to lead to displacement of similar employment already present in Assisted Areas. Projects involving local services, for example retail outlets or restaurants, would be considered ineligible for support.
To make sure the project qualifies, you will need to provide information regarding the size of your market and your existing and expected market share. You will also be asked for details of your main customers and competitors, including their locations.
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>> How to Apply
SME self-declaration [pdf]
(1.16 MB)
