Clearing the confusion - Grant Funding Terminology
Grant funding, whilst having innumerable benefits, can be a confusing and taxing area to get to grips with. We don't think this should put anyone off applying for funding which could potentially have a huge impact on their business. As a result of this we're currently campaigning to make Grant Funding as accessible as possible.
We've compiled a list of some terminology you're likely to come across when looking into grant funding. If there are any other terms you'd like cleared up, please contact us on firstname.lastname@example.org or 01392 427860. We'll be happy to help and then add it to this page.
If there are any other areas of Grant Funding you're unsure about please contact us, we'd be happy to help - we might even write a blog post on the topic.
GRANT FUNDING TERMINOLOGY
- WHAT IS "MATCH FUNDING"?
Also known as the "Intervention Rate", match funding is the % of the total project cost that is funded by the grant. Each grant fund will require a contribution from your organisation towards the costs of the project you are seeking grant funding for. Grant funding support will range from 10% to 100% of project costs depending on the funder, sector, location and project. For example, SMEs and organisations located in Assisted Areas are eligible for higher levels of grant support, and R&D and Training projects receive more generous levels of support than capital projects.
- WHAT IS AN "ASSISTED AREA" AND HOW DOES BEING LOCATED IN ONE HELP?
Assisted Areas are designated by the EU as areas of economic deprivation where there is a failure of the private sector to generate jobs and prosperity. These areas are officially identified and targeted for additional support through state grant funding. If your business is located in an Assisted Area you will be entitled to higher levels of grant funding and it is likely there will be funds that prioritise your Assisted Area for support.
See the interactive map to check whether you are in an Assisted Area at www.ukassistedareasmap.com.
- WHAT DOES "DE MINIMIS" MEAN IN A GRANT CONTEXT?
De Minimis is a limit on the amount of grant funding any single business can receive over a three year period. The limit is set EU wide at €200,000 to prevent unfair state aid support of one company over another. It is important to know that your company needs to comply with either De Minimis or State Aid regulations when securing grant funding. See State Aid below.
- WHAT DOES "STATE AID" MEAN IN A GRANT CONTEXT?
State Aid rules set the levels of grant funding support that any company in the EU can receive. Levels depend on the size of the enterprise, the location of the enterprise and what that enterprise is planning to do. For example, an SME in an Assisted Area looking for grant support in Industrial R&D can legally claim 70% grant support, whereas a company classed as ‘Large’ in the same area can only claim 50%.
See more information at www.gov.uk/state-aid.
- WHAT DOES "ADDITIONALITY" MEAN IN A GRANT CONTEXT?
Grant funders want to see that your project is adding value to the economy and not simply taking value from competitors. Are you creating new products or opening up new markets with your project? Or are you simply taking market share in an established space from you competitors? This is the question that the funder will ask when considering your application. This requirement tends to rule out certain sectors from grant funding, for example retail or professional services.
- WHAT DOES "INTERVENTION RATE" MEAN IN A GRANT CONTEXT?
Please refer to Match Funding above.
We are proud to be the region's leading grants consultancy. We thrive from helping our clients achieve the game-changing projects they aspire to, afforded to them through grant funding. We provide services ranging from Grant Writing to Project Development with particular expertise in Funding Energy.
If you'd like to know more about your eligibility for the large sum of financial aid provided through grant funding, please contact us on 01392 427860 and talk to Mareike, Tom or Alex directly.