As part of the commitment to improving the economic health and wellbeing of the isles by promoting innovation and diversity in the private sector, and supporting local communities in their efforts to generate economic activity, Shetland Islands Council provides financial support through Economic Development Grant Scheme to assist applicants with the costs related to developing projects, where these projects meet key eligibility criteria and will result in extensive local benefits.

This grant support aims to stimulate local economic activity by supporting individuals, businesses and organisations to turn ideas into commercial reality.

Funding

In general, assistance will be limited to 30% of eligible project costs, up to a maximum of £25,000.

Assistance towards research projects will be limited to 50% of project costs, up to a maximum of £25,000.

The minimum grant award under all the above intervention rates is £1,000.

Applicants must demonstrate that the award sought is the minimum required for the project to proceed.

The Economic Development grant scheme can provide financial assistance towards the following, depending on the nature of the project:

• Capital expenditure – equipment, building and/or engineering costs, building improvements
• Revenue expenditure – professional fees, marketing and promotion, office costs, travel costs
• Working capital – in exceptional circumstances and as an element of a wider development project, working capital funding up to a maximum amount of £5,000 may be considered Applicants will be expected to provide detailed justification for the inclusion of any of the above expenditure items in their project costs. Eligibility of any one element of the project costs for assistance does not presuppose eligibility of other associated costs.

Businesses, individuals and organisations may only receive one financial assistance grant under this scheme in any 12-month period. However, the Council may exercise discretion in this regard in exceptional circumstances.

Grant assistance may be awarded as part of a funding package with other public sector organisations. In such circumstances, the total public sector grants will be limited to 50% of eligible project costs.

Scope

Priority Outcomes

Projects will be expected to demonstrate that a number of the following primary outcomes can realistically be achieved:

• Improved product quality
• Import substitution
• New market development
• Improved productivity
• Improved service delivery
• Introduce new or improved manufacturing processes
• Introduce new business activity

Projects which cannot demonstrate that they will achieve one or more of the above primary outcomes will not be considered for grant assistance.

Secondary outcomes

Applications must also demonstrate which of the following secondary outcomes will be achieved by their project:

• Encourage inward investment from the private sector
• Encourage receipt of external grant funding
• Improve access to employment and economic opportunities in rural areas
• Improve local control of resources
• Improve the local skills base
• Improve local employment conditions
• Increase local wage rates
• Infrastructure and/or service development in remote and rural areas
• New job creation
• Promote more sustainable use of resources
• Reduce costs and/or improve efficiency
• Result in environmental improvements

Projects which cannot demonstrate achievement of secondary outcomes may still be considered for assistance, but will not be regarded as a priority for funding.

Target Economic Areas

The following is a list of the target areas of economic activity which regarded as priorities for development, where there is a particular focus on innovation, diversity and growth:

• Creative Industries
• Food and Drink (inc. fisheries and agriculture)
• Manufacturing
• New Technology
• Renewable Energy
• Tourism Projects generating activity within the above areas will be considered priorities for assistance.

Projects which are considered to be in direct competition with other local businesses (or have the potential to do so) and thus distort local market activity in any sector, will not be considered for support. You should address this when logging your enquiry.

Projects outside of the target areas may also be considered for support if strong links to the above primary and secondary outcomes can be demonstrated.

Consideration will be given to any service sector activity where a viable external demand can be clearly evidenced.  Where it can be proven that a market failure exists, and there is currently no local production or supply of a product or service, consideration will be given to supporting a project which addresses this.

Projects which cannot demonstrate links to secondary outcomes and target areas of activity will only be supported in exceptional circumstances.

Eligibility

You need to meet the following criteria to apply

1. Individual or registered businesses/organisations located within Shetland, from a ZE postcode region. However, applications from outwith Shetland may be considered if the project can demonstrate the inward investment potential. UK residents and those ‘granted leave to stay’ in the UK are eligible to apply for support. Evidence may be required, e.g. a passport or a letter from the Home Office granting leave to stay.

2. Your organisation can be a sole trader, partnership, limited company, cooperative group, community enterprise or other legitimate trading entity.

3. You must be able to demonstrate that the project for which they are applying is a commercial undertaking. Applications for assistance from businesses must be accompanied by a business plan containing the following information:

• • • Background of the business/organisation
    • Overview of the relevant sector or area of activity
    • Company structure
    • Management structure
    • Description of the development project
    • Benefits of the project to the business
    • Details of current and proposed employment
    • Analysis of the market or area of activity in question
    • Details of current/potential competition
    • Project costs – include both capital and revenue expenditure
    • Funding sources identified – state whether or not applications have been submitted, any feedback received and/or any approvals
    • Financial projections for a period of at least 3 years – including profit and loss statements, balance sheets and cash flow. The cash flow should be prepared on a monthly basis and should be accompanied by detailed assumptions to justify the figures shown and the statements made in the projections
    • Justification for seeking funding from the Council
    • Impact on the business if the project does not proceed
    • Timescales

4. Where projects are being undertaken by community groups or individuals, the level of detail above may not be required; however, the commercial nature of the project must be clearly established. You should consult with a member of staff within the Economic Development Service.

5. You must be able to demonstrate evidence of a need for financial assistance sought under the Economic Development grant scheme. Any offer of financial assistance will be based on the Council providing the minimum amount of funding required by the project, and applicants will be expected to pursue funding opportunities from other sources where available.

Application

You need to complete an online enquiry form and describe your proposed project and move towards a possible full application.

You should aim to provide as much relevant detail as possible, as this will enable the team to deal with your enquiry in the manner that will benefit you best.

You will receive a response within 5 working days aiming to discuss with you the eligibility of your development project and the suitability of the project for the funding application.

If you feel that you do not have enough detail on your project or would like further assistance, contact Business Gateway Shetland using the contact form and someone will contact you as soon as possible.