R&D Grant Scheme Terms and Conditions

Criteria, terms and conditions for Manufacturing R&D Grant Scheme 2023-2025

1. Introduction

This document sets out the criteria, terms and conditions for the operation of a Manufacturing Research and Development Grant Scheme (the “Scheme”) by Erewash Borough Council (“the Council”).

1.1 Definitions

Agreement: these terms and conditions together with the Application Form and the Grant Offer Letter

Applicant: the SME applying for a Grant under the Scheme

Application Form: the form completed by the Applicant applying for the Grant, including project proposal

Grant: the grant awarded under the Scheme to the Applicant as more particularly detailed in the Grant Offer Letter.

Grant Offer Letter: the letter from the Council to the Applicant offering the Grant

Match Funding: the Applicant’s contribution of at least 33% of the Project value

Project: the project proposed by the Applicant detailed within the Application Form

Aim

1.2 The aim of the Scheme is to support manufacturing SME‘s within Erewash to research, develop and pilot new products, processes or services, utilising the Government’s UK Shared Prosperity Fund (“UKSPF”) to distribute Grants.

1.2 The Scheme will provide grants of between £5,000 and £20,000 to SME’s in accordance with this Agreement. Applicants will need to contribute to the Project with Match-Funding.

1.3 The Grant will enable eligible applicants to:

i. Carry out cutting-edge research and development of a new product, service or process with a view to bringing it closer to the market.

ii. Demonstrate, test/pilot, and validate new products, services or processes.

Financing

1.4 The Department of Levelling Up, Housing and Communities (DLUHC) is providing the funding for the UKSPF. The Grant is managed and administered by the Council.

1.5 The Grant is conditional on the Applicant sourcing and evidencing Match-Funding.

Who can apply for a Grant?

1.6 The Grant is open to all current manufacturing SME businesses based in the borough of Erewash. Applicants should consult with the Council if they are unsure of the location boundaries. The definition of an SME can be found in this document at 5.11.

1.7 Eligible Applicants can apply for a Grant of between £5,000 and £20,000 to enable the research and development of a particular product, service, or process relevant to the business’ current specialism.

2. The Application Process

How applicants can apply for a grant

2.1 Application Forms and related information can be found on the Council website www.erewash.gov.uk/businessgrants or can be requested from the Economic Development (ED) team. Applicants will then need to complete the application form and submit it, along with a detailed project plan and latest audited accounts, to the ED team by email or post.

2.2. A detailed Project plan should be prepared by the Applicant and detailed within the Application Form, and should include information on the following:

The need identified and justification for the Project;
The expected outcomes of the Project and benefit to the Applicant;
Why the Grant is needed;
Details of Match-Funding;
Detailed costings and expenditure for the Project;
Predicted timescales and milestones; and
How the Project will be monitored and evaluated.

2.3 If the Applicant is successful the Grant will be paid into a business bank account by bank transfer. No other method of payment will be offered. This will be subject to Fraud checks.

Timeline for Applications

2.4 Completed Application Forms and supporting Project plans should be submitted to the Council by email or post addressed to the Economic Development Team by the date specified on the website www.erewash.gov.uk/businessgrants. It is intended that there will be 5 rounds of application assessments between March 2023 and March 2025.

3. The Assessment Process

3.1 A Grant panel will assess all applications to check eligibility and the extent to which they meet the aims of the Scheme. If an application doesn’t meet the requirements, the Council will tell the Applicant the reasons why. The Council may request further information from an Applicant and/or request that an incomplete or incorrect Application Form be resubmitted with changes.

3.2 If the application meets the Scheme’s requirements, it will be considered by a panel appointed by the Council as per clause 3.3.

3.3 The Grant panel will assess Grant applications over a series of dates throughout the duration of the Scheme. These dates will be published on the Council website. Applicants will receive their Grant Offer Letter, as soon as practicable following each panel meeting. The panel will consist of the Lead Member for Regeneration and Planning, The Chief Executive of Erewash Partnership and the Council’s Planning Policy and Regeneration Manager (or substitutes as delegated).

3.4 Each Grant application will be judged on its own merits, as to how well it meets the Scheme’s aims and eligibility criteria (as set out in the applicant’s guide). The Council will reserve the right to vary the level of Grant or reject an application and will not be obligated to enter into discussion on individual applications.

3.5 All Grants will be made at the sole discretion of the Council. All Grants will be subject to availability of sufficient funding from the UKSPF. The Council will not be committed until the formal acceptance of the Grant Offer Letter by the Applicant.

3.6 The Council will undertake anti-fraud checks and officers will need to visit the business premises as part of the assessment process.

3.7 For subsidy control purposes, applicants will need to declare what grant funding the business has received in the past 3 years.

4. How will applicants be informed of grant decision?

4.1 The Council will notify each Applicant of its decision in writing. If an application is approved the Council will make an offer of grant by sending you an Grant Offer Letter which will specify: the name of the eligible Applicant; the Project the Grant is to be spent on; the amount of the Grant; the date by which the expenditure must be completed; and the terms and conditions under which the grant is being offered ("Offer of Grant).

4.2 Applicants will need to accept the Offer of a Grant within 10 working days of receiving the Grant Offer Letter. Applicants will be able to do this by returning a copy of the Grant Offer Letter signed by the named Applicant to the Economic Development Team. If the signed Grant Offer Letter is returned after this date the Council will consider the Offer of Grant as withdrawn.

5. The Terms and Conditions of the Grant

Works eligible for grant funding

5.1 The Grant is not retrospective and therefore cannot be used for the reimbursement of work already undertaken before the date of the Grant Offer Letter.

5.2 The Council must be notified immediately of any variations needed to the Offer of Grant and before any variation to the application takes place.

5.3 Variations to the Agreement must be approved in writing prior to such work commencing. The Council reserves the right to refuse the Grant for changes to the Project specification which it deems not appropriate for the Scheme.

Payment of grant

5.4 Grants are discretionary, and the Council reserves the right to withhold payment of the Grant in whole or part if the Project changes or cannot be undertaken or if any term and condition of the Agreement has been breached.

5.5 Payment will be subject to the Applicant having satisfactorily complied with all terms and conditions of the Agreement and passing all fraud checks.

5.6 If the costs of the proposed Project exceeds the predicted amount that is stated within the Application Form, the Council is not obliged to increase the Grant amount.

5.7 Payment of the Grant will be made into the Applicant’s business bank account via BACS.

Requirements on Applicants awarded grant

5.8 Applicants will agree for the Council to involve them in publicity, e.g., press releases, case studies and photographs and reports related to the Grant.

5.9 Applicants will agree to take part in any monitoring of how the Grant is being spent and produce relevant monitoring information as set out in the Evaluation Form (which will be provided to the Applicant once the Grant is approved) when requested, every 12 months up to 5 years after the Grant is paid.

5.10 Applicants will agree not to use the Grant for: Recurring costs of running a business (including salaries, stock, rent, utility charges, subscriptions, licences, etc.); repaying existing loans or debts.; the reimbursement of goods/services/labour purchased prior to the date of an Grant Offer Letter; and any activities that may bring the Council into disrepute.

5.11 Applicants must meet the definition of an SME: fewer than 250 employees and with a turnover of less than £40m.

Assignment

5.12 The Applicant may not, assign, transfer, sub-contract, or in any other way make over to any third party the benefit and/or the burden of the Agreement or, except as contemplated as part of the Project, transfer or pay to any other person any part of the Grant.

VAT

5.13 Applicants who are VAT registered will have their Grant assessed on the net cost of eligible Projects; non-registered applicants on the gross cost. If the Applicant does not know whether they are VAT registered or not, they must seek advice from HM Revenue & Customs.

Erewash Borough Council liability

5.14 The Council, its officers and agents shall not at any time be held liable to any person in relation to any loss or damage arising, either directly or indirectly, as a result of compliance by the Applicant with these terms and conditions of Grant. Award of the Grant does not imply that the Council is expressing a view regarding the business or its products/services nor that it accepts responsibility for any debts, or liabilities incurred by the Applicant or the business.

Repayment of grant

5.15 The Council reserves the right to recover all or part of the Grant it has provided to the Applicant if:

The Applicant is found to have improperly tried to influence the decision of any officer or Elected Member of the Council in the award of a Grant.
The SME is sold or ceases to trade for whatever reason within a 6-month period from receipt of the Grant.
The SME headquarters relocates outside the boundaries of Erewash before 1 April 2025.
Any information provided in the Application Form or other correspondence is found to be substantially incorrect, misleading, or incomplete.
The Applicant fails to comply with any of the terms and conditions of this Agreement.

Debt

5.16 A check will be made to ascertain whether the Applicant has any outstanding debts owed to the Council. If it is found that such debts exist, the Council reserves the right to withhold Grant payment until such debts are cleared.

Data Sharing

5.17 Data will be shared with the DLUHC of the UK Government who have provided the funding for the Scheme. Data supplied in the Application Form will be held on the shared database in accordance with Data Protection legislation. We will hold, process, and store your information in accordance with Data Protection Law.

5.18 We sometimes need to share your information within the Council or with other organisations. We will only share your information when necessary and when the law allows us to. For processing and administering your Grant application and payment we may need to share your information with:

Project partners including the Erewash Partnership; or
In certain cases we may also share your information with other individuals and organisations for the purpose of the prevention and detection of fraud.

Our full privacy notice is available at www.erewash.gov.uk/privacy

Subsidy Control

5.19 In this clause the following defined terms are used:

Group – means the Applicant, and any other persons under common ownership or common control (as defined in section 8 of the Subsidy Control Act 2022) including any subsidiary or holding company from time to time of the Applicant, and any subsidiary from time to time of a holding company of that company.
Minimal Financial Assistance means a subsidy given under the MFA provisions;
MFA Provisions means sections 36 and 37 of the Subsidy Control Act 2022;
SAFA Provisions means the provisions on granting ‘Small Amounts of Financial Assistance” set out at Article 364(4) of the UK-EU TCA as incorporated into domestic law by section 29 of the European Union (Future Relationship) Act 2020;
Subsidy Control Rules means all laws of the United Kingdom limiting State Subsidy including the Subsidy Control Act 2022, any relevant secondary legislation and government guidance, and any relevant case law of the courts and tribunals of England and Wales interpreting or regarding the application of such laws and to the extent relevant, the Protocol on Ireland/Northern Ireland in the EU Withdrawal Agreement together with such rules, agreements, protocols and laws as may replace them from time to time;
State Subsidy has the meaning given to the term “subsidy” in section 2 of the Subsidy Control Act 2022;
State Aid De Minimis Rules means Commission Regulation EU No. 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid, and Commission Regulation EU No. 360/2012 of 25 April 2012 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest;
UK-EU TCA means the Trade and Cooperation Agreement between the European Union and the European Atomic Agency Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland on the other part, signed on 30 December 2020, including such amendments as are agreed between the parties from time to time.

5.20 The Applicant shall:

comply with the Subsidy Control Rules;
ensure that the requirements of the Subsidy Control Rules are met in relation to the project;
if requested, confirm to the Council’s satisfaction that all requirements of the Subsidy Control Rules are met in relation to the project; and
keep a written record which confirms that it has received a subsidy by way of Minimal Financial Assistance, the date on which the grant was given (being the date of this Agreement and the value of the grant, and maintain such record for three (3) years following the date of this Agreement

5.21 The Applicant acknowledges that the grant is being given as Minimal Financial Assistance. The Applicant has confirmed to the Council that receipt of the grant will not result in the Applicant and/or its Group having received subsidies under the State Aid De Minimis Rules and/or the SAFA Provisions and/or the MFA Provisions in the elapsed part of the current (up to the date of this Agreement) and two previous Financial Years which when cumulated are valued at more than £315,000

5.22 The Applicant shall not take any action, or fail to take any action, or (insofar as is reasonably within its power) permit anything to occur that will cause the Council to be in breach of its obligations under the Subsidy Control Rules.

5.23 The Applicant shall provide such assistance as is requested by the Council to enable the Council to comply with its obligations under the Subsidy Control Rules. Where the Council requests information or documents from the Applicant under this clause 5.23, the Applicant shall provide them within 5 working days of request. The Applicant acknowledges and agrees that the Council may be required to disclose information that it has received from the Applicant without consulting the Applicant pursuant to its obligations under the Subsidy Control Rules.

5.24 No payments shall be made to the Applicant if it becomes subject to a recovery order following a decision of any competent court or tribunal declaring any State Subsidy illegal or incompatible with the Subsidy Control Rules.

5.25 The Council may vary or withhold any or all of the grant and/or require repayment of grant already paid, together with interest from the date of payment, if:

the representations and warranties made by the Applicant under this agreement do not remain true and correct;
any State Subsidy given by the Council is used for a purpose other than the purpose for which it was given;
variation, repayment or recovery is, in the reasonable opinion of the Council, required under or by virtue of the Subsidy Control Rules; or
the Council is otherwise required to vary, repay or recover the grant in whole or in part by any court or tribunal of relevant jurisdiction and the interest rate payable will be set by the Council at a level sufficient for the Council to comply with any such requirement or obligation. Contracts (Rights of Third Parties) Act 1999

The Agreement does not and is not intended to confer any contractual benefit on any person pursuant to the terms of the Contracts (Rights of Third Parties) Act 1999.

6. Governing law

6.1 The Agreement shall be governed by and construed in accordance with the law of England and the parties irrevocably submit to the exclusive jurisdiction of the English courts.

7. Entire agreement

7.1 The Agreement (together with all documents attached to or referred to within it) constitutes the entire agreement and understanding between the parties in relation to the Grant and supersedes any previous agreement or understanding between them in relation to such subject matter.