LGF Business Start-Up Grant Guidance

Grants are available to assist new business start-ups, existing businesses and inward investors to deliver projects that DO NOT meet the eligibility criteria for other grant sources, such as Welsh Government, etc.

You may be eligible to apply if you:

• Have started trading or have been TEST Trading within the last 6 months
• Have not started trading, are employed part-time, unemployed, economically inactive, under notice of redundancy or moving from a job into self-employment at the time of your application (for Partnerships and Ltd Companies, each applicant must meet this eligibility criteria)
• Are aged 18 or over.
• Can demonstrate that you have experience and/or hold qualifications relevant to the field in which the business operates

• Have attended either:
• A Welsh Government business start-up workshop or
• A Prince’s Trust explore enterprise workshop
• Are receiving support through Business Wales or another approved/recognised support organisation
• Can demonstrate previous experience of self-employment.

Funding can support businesses operating in most sectors as long as the business is based within Neath Port Talbot. Examples include:

• Construction
• Creative and Media
• Energy
• Engineering
• Environmental
• ICT
• Manufacturing
• Renewables
• Retail
• Tourism, Hospitality & Leisure

Whilst a wide range of sectors and activities are supported, the list is not exhaustive. The Council will not support any illegal activity or any other activity which the panel deem may bring the Council’s reputation into question. The following lists activities that are excluded from grant support.

• Nude or semi-nude modelling
• Counselling
• Offering of sexual services of any kind
• Life Coaching
• Pornography
• Gambling
• Gaming Centres
• Promotion of particular religious or political activities
• Sunbed services
• Speculative Building
• Alternatives therapies, products and medicines
• Complimentary medical treatments, cosmetic products and aesthetic procedures.

The following activities will be eligible ONLY where they hold a Special Procedures License issued by their local authority:

• Tattooists (including semi-permanent makeup and microblading)
• Body piercing (including ear piercing)
• Electrolysis
• Acupuncture (including dry needling)

The grant will support a range of costs subject to a minimum spend of £50.00 incl. of VAT per quote, including:

• Purchase and refurbishment of premises
• Plant machinery and Equipment
• IT hard and software
• Stock (i.e. raw materials used in the production of the items/products you wish to sell). NB: Items you buy-in to sell are not eligible.
• Tools
• Overheads including – marketing, advertising, insurances, etc.

• Weekly/Monthly subscriptions (unless they may be purchased upfront)
• Vehicles and their associated running costs i.e. petrol, tyres, maintenance, etc.

NB: Items purchased prior to submitting an application or receiving a formal grant offer will not be eligible for funding support.

Grants of between £500 and £10,000 are available.

Up to £10,000 towards eligible costs, match funded as follows:

Project expenditure between £500 – £10,000 – 50% funded via the grant with applicants funding the other 50%.

The level of grant awarded is calculated on the basis of the following:

1. Percentage of the eligible costs (inclusive of VAT), and
2. The number of jobs created by the project as follows:

• £7,500 per full-time role (30+ hours per week). An uplift to £10,000 may be available where the role is paid above the UK national average salary (£39,309), subject to eligibility criteria.
• £3,750 per part-time role (16–29 hours per week). An uplift to £5,000 may be available where the full-time equivalent (FTE) salary exceeds £39,309, subject to eligibility criteria.

Grants are discretionary and applications will be considered by the Council on a case-by-case basis.

NB:      

• You cannot commit to expenditure before receiving a written offer.
• The Council has the discretion to check whether a business or applicant is in arrears with any payment to Neath Port Talbot Council and if found to be so, the offer of support may be withdrawn.
• Funding from Neath Port Talbot Council is subject to the UK Government Subsidy Control Act (2022).

The Start-up Grant will be delivered through a competitive two stage Open Call process, promoted widely to new and existing businesses across Neath Port Talbot.

Stage 1 – Expression of Interest (EOI)

–             Applicants complete an EOI form.

–             Eligibility checks and scoring undertaken using published criteria.

–             EOIs ranked by percentage score to select those invited to full application.

Stage 2 – Full Application

–             Eligible applicants submit full application and supporting evidence.

–             Officers complete due diligence and subsidy control checks.

–             Summary reports prepared for the Funding Panel.

–             Panel reviews recommendations and makes approvals.

–             Successful applicants receive a formal Grant Offer Letter

Quotes for the project expenditure must be submitted with your application.

Procurement Guidelines:

NB: For existing businesses only items over £50.00 inclusive of VAT will be eligible

For Start-up businesses only items over £50.00 inclusive of VAT will be eligible

The following must be adhered to:

1. If you have your own Procurement Policy: A copy must be provided to Neath Port Talbot Council’s LGF Programme Management Office for their records. 
2. If you do not have a Procurement Policy, you MUST follow the following rules to demonstrate value for money:

The Recipient shall, when awarding contracts to be funded from the Grant, do so:

• by way of a competitive procurement process which is equivalent to that under the Procurement Act 2023; or
• where the procurement is below the relevant threshold that applies for the purposes of the Procurement Act 2023, by way of an equivalent competitive, fair, transparent and non-discriminatory procurement process which has been approved by the Council and which is sufficient to satisfy the Council that value for money has been or will be achieved, which shall include:

• Up to £10,000 – 1 (one) quotation required

• Between £10,000 and £100,000 – 3 (three) quotations required (or use of a competitively sourced framework agreement)*

The quotations must be based on:

• the same specification of requirements
• the same evaluation criteria and evaluated on a like for like basis. It is good practice to establish an evaluation panel.
• the same closing date for receipt of quotes, after which no submissions will be accepted.

A documented record of the quotations sought, the evaluation process and the decision to award must be recorded for audit purposes.

*In the event that only 1 (one) quotation is received, you must contact the Council to provide details and justification of the procurement process you have undertaken. The decision to proceed to purchase must be approved by the Council on a case by case basis. Copy of all quotations and correspondence retained for records.   All figures include VAT.

Over £100,000 up to Procurement Act 2023 threshold (currently £214,904 for goods/services and £5,372,609 for works). A minimum of 3 (three) quotations must be sought from competitive sources. In the event that less than two quotations are received, you must contact the Council to provide details and justification of the procurement process you have undertaken. The decision to proceed to purchase must be approved by the Council on a case by case basis. Copy of all quotations and correspondence retained for records.  

All figures include VAT.

All those invited to provide a quotation must be provided with the same information:

• the same specification of requirements
• an outline of the evaluation criteria against which the contract will be awarded and
• the same closing date for receipt of quotes, after which no submissions will be accepted.

The evaluation process you follow must be consistent with the original evaluation criteria outlined and a justification sheet produced detailing on what basis the successful tender was awarded. It is the best practice to establish an evaluation panel to evaluate tenders.

For Procurement processes with a value above the UK Threshold, contact your Council Project Officer.

NB: Submitted applications must be duly authorised by the owner, a partner or director in the business.

Can I use credit cards and cash as well as my bank account to pay my project costs?

Payments for project expenditure must be made from a business bank account as follows:

Self-employed and sole traders – must use a bank account for business purposes, which may either be in your personal name, or business name. Statements submitted with grant claims must clearly evidence business income and expenditure.

Partnerships, Limited Companies, etc. – must use a bank account in the business name.

Purchases by credit card will be accepted where the card is held in the name and address of the grant applicant. Payments against credit card statements must be made from the above business bank account. Evidence will be required to show that the value of such credit card purchases have been paid off the relevant statement.  

Payments by cash will not be accepted.  

In submitting an application, you confirm that you:

• Can complete the project and draw down the grant within three months of the date of the offer.
• Have a nominated business bank account from which you will make the project payments.
• Acknowledge that Neath Port Talbot Council will use your business and project details in future promotional activity e.g. press releases, case studies, etc.
• Acknowledge that Neath Port Talbot Council is required to publish details of grant awards.

The Council’s Funding Panel will consider all applications. If successful, you will receive a written offer of funding and we may ask you for additional information.

How do I draw down the funding?

Your offer letter will include details of evidence that we will require e.g. copy invoices, dedicated business bank statements, evidence of other funding sources, etc.

NB: the invoices and/or receipts you submit with your claim must match the original quotes in your application and have a minimum value of £50.00 inclusive of VAT.

On completion, you will be required to evidence that you have company registration or HMRC evidence to show business creation and Business Insurance to prove activity has started.

Will I receive any ongoing support?

The Economic Development Team will stay in contact with you and will visit you to monitor your project. Ongoing advice and assistance are available by contacting the Team.

Can I apply for further funding?

Further applications may be made. However, projects for previous grants offered, must have been completed and the grant drawn down. The new project will need to evidence job creation distinct from that in any previous applications.

General Data Protection Regulations (GDPR)

Your information will be processed in line with the Neath Port Talbot CBC – Economic Development Services Privacy Notice a hard copy of which is available on request.