What kind of financial support is available?
Local Enterprise Office Donegal provides a wide range of financial and other types of assistance to help you start up your new business or grow an existing business. We welcome enquiries from business for financial support but remind clients that the LEO must operate within national guidelines that outline that financial support is targeted at manufacturing businesses or those that are engaged in Internationally Traded Services (i.e. services that are being exported).
In general Local Enterprise Office Donegal cannot offer grant aid to:
- retail businesses
- personal & professional services businesses
- construction sector
- primary agriculture businesses
- other local services that duplicate existing local businesses.
It is important to note that although the LEO cannot provide grant aid to businesses in these sectors, we can, however, provide assistance with mentoring, training and website development. Please talk to us and we’ll do what we can to help.
What is the eligibility criteria?
Local Enterprise Office Donegal can assist in the establishment, and/or development, of new and existing enterprises from individuals/sole traders and companies subject to the following eligibility criteria:
- The enterprise must be in manufacturing or Internationally Traded Services Sectors;
- The enterprise must be in the commercial sphere;
- The enterprise must demonstrate a market for the product/service;
- The enterprise must have a capacity for growth and new job creation;
- The enterprise must not employ more than 10 people.
What is a Feasibility grant?
Feasibility grants are designed to assist the promoter with researching market demand for a product or service and examining its sustainability. It includes assistance with innovation including specific consultancy requirements, hiring of expertise from third level colleges, design, patent costs, and prototype development.
The maximum Feasibility / Innovation Grant payable by Donegal Local Enterprise Office is 60% of the investment or €15,000 whichever is the lesser.
Expenditure may be considered under the following headings:
- Innovation Costs
- Own Labour Research
- Consultancy Costs
- Miscellaneous Costs.
For further information please contact us.
What is a Priming grant?
Priming Grants are available to business within the first 18 months of start-up; and
Priming Grants may be available for businesses that meet the following criteria:
- Are a manufacturing or internationally traded services business;
- Are located in County Donegal;
- Employ no more than 10 employees;
- Is a domestically traded Service business with the potential to trade internationally.
The maximum Priming Grant payable shall be 50% of the investment or €150,000 whichever is the lesser. Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally.
In all other cases, the maximum grant shall be 50% of the investment or €80,000 whichever is the lesser. A percentage of any grant assistance will be in refundable form.
Subject to the 50% limit, and under certain conditions, a maximum grant of €15,000 per full time job created shall apply in respect of any employment support granted.
What is a Business Expansion grant?
Business Expansion Grants are available to businesses that have been in existence for longer than 18 months.
Business Expansion Grants may be available for businesses that meet the following criteria:
- Are a manufacturing or internationally traded services business;
- Are located in County Donegal;
- Employ no more than 10 employees;
- Is a domestically traded Service business with the potential to trade internationally.
The maximum Business Expansion Grant payable shall be 50% of the investment or €150,000 whichever is the lesser. Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally.
In all other cases, the maximum grant shall be 50% of the investment or €80,000 whichever is the lesser. A percentage of any grant assistance will be in refundable form.
Subject to the 50% limit, and under certain conditions, a maximum grant of €15,000 per full time job created shall apply in respect of any employment support granted.
What is a Microfinance Ireland?
The objective of Microfinance Ireland is to provide additional lending to start-up, newly established or growing microenterprises that have commercially viable proposals but do not meet conventional risk criteria applied by commercial banks.
The Microenterprise Loan Fund forms part of a suite of financial schemes provided through the Department of Jobs, Enterprise and Innovation to assist businesses in a range of sizes across all industry sectors.
Loans of up to €25,000 are available for commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks.
Further information on Micro Finance Ireland can be found here.
Microfinance Ireland is a subsidiary company of the Social Finance Foundation which was founded in 2007 by the Minister for Finance and has substantial experience in this area. Microfinance Ireland benefits from a guarantee issued under the European Progress Microfinance Facility established by the European Union. This fund is designed to stimulate lending to sustainable microenterprises.
Applications to the MicroFinance fund can be submitted to Donegal LEO office and will be locally evaluated before a recommendation is issued to Micro Finance Ireland.
Are there other Revenue Incentives?
Revenue & Other Incentives for Irish Business
- Employment Investment Incentive (EII)
The Employment Investment Incentive (EII) is a tax relief incentive scheme which has replaced the Business Expansion Scheme, which provides tax relief for investment in certain corporate trades. The maximum investment by all investors in any one company or group of companies is €10,000,000 subject to a maximum of €2,500,000 in any one twelve month period. It allows individual investors to obtain income tax relief on investments up to a maximum of €150,000 per annum in each tax year up to 2013. Relief is initially available to an individual at 30%. A further 11% tax relief will be available where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. Click here for further detailed information on the Employment and Investment Incentive
The Research and Development Tax Credit is a valuable tax-based incentive that is designed to encourage investment in R&D by companies in Ireland. A 25% tax credit for qualifying Research and Development expenditure exists for companies engaged in in-house qualifying research and development undertaken within the European Economic Area. This credit may be set against a company's Corporation Tax liability. The first €100,000 of all qualifying R&D expenditure will benefit from the full 25% R&D tax credit from 2012. This is of particular benefit to SMEs. For larger R&D expenditure, the tax credit will continue to apply only to the amount by which expenditure in 2012 exceeds that incurred in the base year 2003.Click here for further detailed information on the R&D Tax Credit
Starting in Business
- Startup Refunds for Entrepreneurs (SURE)
If you are interested in starting your own company, you may be entitled to an income tax refund of up to 41% of the capital that you invest under SURE. Depending on the size of your investment you may be entitled to a refund of income tax paid over the six years prior to the year in which you invest. Click here for further information about the Startup Refunds for Entrepreneurs initiative
- Back to Work Enterprise Allowance
If you have been signing on for over 12 months and you would like to become self-employed, the Back to Work Enterprise Allowance (BTWEA) allows you to keep your social welfare payment for 2 years (Year 1: 100%, Year 2:75%). To qualify, you must be setting up a business that a Local Development Company or a Facilitator has approved in writing in advance. Click here for further detailed information on the Back to Work Enterprise Allowance
- Short-Term Enterprise Allowance
The Short-Term Enterprise Allowance (STEA) gives support to people who have lost their job and want to start their own business. It is paid instead of Jobseeker’s Benefit for a maximum of 1 year. It ends when the entitlement to Jobseeker's Benefit ends (that is, at either 9 months or 12 months).Click here for further detailed information on the Short-Term Enterprise Allowance
Recruiting
JobsPlus is an incentive from the Department of Social Protection to encourage and reward employers who offer employment opportunities to the long term unemployed. Grants of €7,500 and €10,000 are available. Click here for further detailed information on JobsPlus
