LEOs can assist in the establishment and/or development of new and existing enterprises (limited company, individuals/sole trader, cooperatives and partnerships) provided that such enterprises/projects are capable of attaining commercial viability and subject to the following eligibility criteria:
Within the eligibility criteria there are certain priorities and restrictions:
- Priority must be given to enterprises in the manufacturing or internationally traded services sectors which over time can develop into strong export entities and graduate to the Enterprise Ireland portfolio;
- Salary support may be offered to unique tourism services projects that are focused predominantly on generating revenues from overseas visitors and which do not give rise to deadweight and/or displacement in the local economy;
- This grant aid does not support those areas such as retail enterprises, personal services (eg hairdressers, gardeners, creches etc), professional services (accountants, solicitors etc), construction/local building services, as this is considered to give rise to unacceptable deadweight (where the project would have proceeded anyway) and/or displacement (where the projects imply displace business from other players in the market).
- The sector of the economy in which an enterprise is operating or intends to operate
- The size or proposed size of the enterprise. It’s important for applicants to consider the linked companies rule when determining if they qualify for a LEO grant. This rule requires applicants to include the data from any partner or linked enterprises when calculating their employee numbers and financial thresholds. This means that if a business is part of a larger group, it must account for the employees and financial figures of the entire group, not just the individual entity. Here’s a simple breakdown:
Autonomous Enterprise: If your business is totally independent or has one or more minority partnerships (each less than 25%), you use the figures solely from your business.
Partner Enterprise: If your business holds at least 25%, but no more than 50%, of another enterprise, or another enterprise holds at least 25%, but no more than 50%, of your business, you must add a proportion of the other enterprise’s figures to your own.
Linked Enterprise: If your business holds more than 50% of another enterprise or another enterprise holds more than 50% of your business, you must add 100% of the other enterprise’s figures to your own.
The intention of this EU regulation is to ensure that the SME status reflects the economic power of the entire group of linked enterprises, preventing larger businesses from gaining undue advantage from SME support programs. It’s a key part of maintaining fair competition and ensuring that support is directed towards genuinely small enterprises.
- Any expenditure incurred, prior to receipt of application form, will not be eligible for grant support.
- The grant aid is considered to not give rise to unacceptable/ineligible business activities or deadweight (where the project would have proceeded anyway)
Ineligible Businesses
- Enterprise Ireland / IDA / Údarás na Gaeltachta clients
- Domestically focused retail, personal services, professional services and construction services.
- Are operating in the coal or steel sectors.
- Are involved in activities that Local Enterprise Offices considers as ineligible or as involving an unacceptable reputational risk. Ineligible activities include activities relating to:
- The gambling sector, including "gaming" (as defined in the Gaming and Lotteries Act 1956)
- Adult entertainment
- Tobacco and tobacco related products.
- Cannabis-based products which are not authorised as medicines.
Any queries in relating to the eligibility will be directed to the Department of Enterprise Trade and Employment/Enterprise Ireland Policy department who will assess the case.
