Rural Development Programme for England (RDPE) GROWTH PROGRAMME

1. Rural Development Programme for England (RDPE)GROWTH PROGRAMME KAREN SPRIGGS Rural Payments Agency

2. Purpose • Introduction to the Rural Development Programme for England (RDPE) • Growth Programme Calls • Eligibility criteria • Application process and timescales

3. QUICK GLOSSARY • EAFRD - European Agricultural Fund for Rural Dev • ESIF – Economic and Social Investment Fund • DEFRA – Department for Environment, Food and Rural Affairs • RPA – Rural Payments Agency • RD – Rural Development • LEP – Local Enterprise Partnership • LEADER – Liaison among Actors in Rural Economic Dev • CP – Countryside Productivity • CS – Countryside Stewardship

4. Rural Development Programme for England Structural Funds ERDF ESF EAFRD Growth Programme

5. GROWTH PROGRAMME • Defra launched national Growth calls in January 2017 for: • Food Processing • Business Development • Tourism Infrastructure • Each call has a Handbook on Gov.uk and a Helpline on 03000 200 301. • Eligibility criteria • National priorities • Local LEP priorities COMPETITIVE PROCESS AND YOU MAY NOT GET A GRANT.

6. Growth Programme Roles? • RPA ROLE • Delivers the grant process. • Assesses EOIs and full applications for eligibility, value for money and local strategic fit. • Processes claims for payment. • ESIF SUB COMMITTEE ROLE • Advises on local strategic priority as part of the EOI stage.

7. BUSINESS DEVELOPMENT

8. What are the grants for? • For micro, small businesses and farmers diversifying into non-agricultural activity, to grow and create more jobs. • Grant funding can help pay for: • Constructing or improving buildings • Buying new equipment and machinery How much money can you apply for? • Up to 40% of the eligible costs of a project. • Minimum grant is £35,000. • State aid rules limit funding to €200,000, around £170,000.

9. Who can apply? The size of your business depends on: • Number of full time equivalent (FTE) employees and • Minimum of 30 hrs/week is 1 FTE • Financial performance • Rural micro, small and social enterprises. • Farmers diversifying into non-agricultural activity.

10. Cumbria Business Development Call Total Call Value: £928,247 Minimum Grant: £35,000 Maximum Grant: £170,000 (€200,000 de minimis) • Support diversification of farm business. • Support innovation • Adoption of new processes and techniques • Increase in business productivity • Creation of new products and services • Allow business to start or increase exports. • Create 1 FTE job for each £25k of grant.

11. National priorities - Business Development

12. Business Dev Project Examples Small rural business makes components for manufacturing companies. Project to purchase 2 machines to make new components. • Creates 2 new full time jobs. • Introduces new, high-precision techniques, reduces downtime and creates higher quality products. • Investment opens up new markets locally, nationally and overseas. A farm business diversifying into metal fabrication. Project to construct a new building to accommodate the workshop. • Project is farm diversification. • Project will create a new product to the business. • Business will employ 2new skilled person on a full-time basis.

13. FOOD PROCESSING

14. What are the grants for? To support food and drink businesses, that process agricultural and horticultural products, to grow and create new jobs. Grant funding can help pay for: • Constructing or improving buildings • Buying new equipment and machinery How much money can you apply for? • Up to 40% of the eligible costs of a project. • Minimum grant is £35,000. • Maximum grant set by the Call is £250,000.

15. Who can apply? If your raw materials are Annex I: • You can be any size of business, urban or rural. • You can apply for up to 40% whatever size business you are. • Annex 1 in and out is limited to the maximum call grant value (£250k). • Annex 1 in but not out is limited to de minimis (£170k). If neither your raw material or your end product is on the Annex 1 list. • You can only apply if you are a micro or small business in a rural area, or a farmer diversifying. • You can apply for up to 40%. • Maximum grant value is limited to de minimis(£170k).

16. Cumbria Food Processing Call • Total Call: £1,392,370 • Minimum Grant: £35,000 • Maximum Grant: £250,000 • Located within the Food Enterprise Zone or clusters of 3 or more food and drink enterprises. • Support local food initiatives • Process local food and sell locally • Support innovation • New processes and techniques, increasing productivity and creating new products • Start or increase exports

17. National priorities - Food Processing

18. Food Processing Project Examples Existing milk processor wants to add a new product line to make ice cream for the local market with the potential to expand into national markets.Project to purchase 2 new machines. • Creates 2 new full time jobs. • Provides direct benefits to farmers who supply the raw materials. • Investment opens up new markets locally and nationally. • Introduces new equipment and processes to the business, making it more productive A slaughtering/processing business wants to expand its meat cutting/packaging facilities to produce ready-to-cook consumer packs. Project will construct a new building for the new cutting and packaging facilities. • Creates 3 new full time jobs. • Raw material sourced locally, local provenance. • Investment opens up new markets locally and nationally. • Increases turnover and profitability of the business.

19. RURAL TOURISM INFRASTRUCTURE

20. What are the grants for? To support projects that will encourage more tourists to come, to stay longer and to spend more money in rural areas. • Grant funding can help pay for capital expenditure on tourism infrastructure. How much money can you apply for? • Minimum grant is £35,000. • Maximum grant for commercial projects: • Up to 40% and £170,000 de minimis • Maximum grant for other projects: • Up to 100% and £250,000, the call maximum

21. Cumbria Rural Infrastructure Call • Total Call: £1,206,721 • Minimum Grant: £35,000 • Maximum Grant: Varies between £170k (de minimis) and £250k • Projects that increase overnight stays and are sustainable: • New or enhanced existing visitor attractions • Attractions that extend the tourism season, such as all-weather • Attractions aimed at increasing international visits • Projects building on Cumbria’s heritage, landscape, culture and outdoor offer, including cycling infrastructure and events that fit with the Destination Management Plan. • Projects that create new jobs.

22. National priorities - Tourism

23. Rural Tourism Infrastructure Examples An applicant wants to create a new circular cycle route aimed at families, with cycle hire for all ages. • Creates 2 jobs • Project creates a new sustainable tourist attraction • Project builds on Cumbria’s outdoor offer An applicant has a project idea for a wet weather indoor attraction based around puzzles and problem solving. • Project will create 4/5 jobs • Project will attract tourists outside the usual period of May to October • Project will create an all-weather attraction

24. All about Eligibility Are you in an eligible area? • Check on MAGIC at .GOV.UK You will not score well if your project: • Displaces existing activity. • Relocates a business with no net increase in economic activity or jobs. • Cannot demonstrate a plan to increase productivity as a result of the investment. • Creates a small number of low productivity jobs if such jobs are not needed in the area.

25. Ineligible costs (more in the handbook) Some examples: • Costs of refurbishment and simple like-for-like replacement of buildings, machinery or equipment. • Leasing contract costs – such as overheads and insurance charges. • Costs of computers, software or printers for general business use (e.g. accounts or processing orders). • Salaries or running costs. • Developing or setting up agricultural businesses. • Costs of marketing and promotion. • Contributions in kind.

26. Making an Application to the Growth Programme

28. Expression of Interest • EOI stage assesses your proposed project for: • Eligibility • Fit with local priorities • RPA will aim to tell you the outcome in 30 working days from receipt of your EOI. • We ask the ESIF Sub Committee for their views on the fit with local priorities during our assessment.

29. Full application • Full application stage remains competitive. • Full business case is required for the RPA to make a funding decision on your project. • When you submit you need to have: • Required approvals in place i.e. planning permission. • Secured match funding. • Be able to evidence the case for need/ demand. • Be able to demonstrate value for money against costs.

30. What we look for at Full application stage?

31. Timescales

32. Top Tips • Jobs + Growth + Rural • Sell us your idea, explain clearly what your project does and the benefit • Don’t ask for full amount if you don’t need it • Show us what the grant funding means to the success of your project • Do the market research .

33. Further info • All information (including the Handbook for each call and EOI application form) is available on the .gov.uk website https://www.gov.uk/government/publications/rdpe-growth-programme • Please also contact the RPA if you would like to discuss your project or would like any further advice. • Rural Payments Helpline: 03000 200 301 • Email: GPEnquiries@rpa.gsi.gov.uk