What is a Priming Grant?

A Priming Grant is a business start-up grant available to micro enterprises within the first 18 months of start-up. Please read FAQs. 

What does the Priming Grant cover?

A Priming Grant may be paid to buy new equipment, help with direct business costs such as salary, rental costs, utilities, marketing, consultancy costs, and so on. Grant assistance is not available for the purchase of a building, land or mobile assets.Grant expenditure may be considered under the following headings:

• Capital Items – including fit out of workspace, office equipment, machinery, fixed technology costs, and so on. (Note that the cost of buying or construction of a building and the cost of land and mobile assets including laptops, tablets and smart phones are excluded from grant aid).
• Salary Costs – for the first year of employment. This money is paid in two instalments. The first instalment is at the start of employment; and the second after six months of employment. The level of grant support will reflect the salary scale proposed for the job being generated. Jobs attracting salaries of more than €40,000 will be eligible for the maximum €15,000 grant support. Lower-paid positions will receive a lower grant. Please note that approved grants are to be used for their intended purposes. If salaries are being supported by the LEO, the detailed job description and contracts for the role need to be forwarded to the LEO before the funds can be drawn down.
• Consultancy, Innovation, Marketing Costs – these may include packaging, brochures, business cards, trade fairs, website development, consultancy fees and other marketing initiatives. 

Who can apply for a Priming Grant?

Micro enterprises (Limited Companies, Designated Activity Companies, sole traders, co-operatives and  partnerships) can apply for a Priming Grant to help them get the business started within the first 18  months of startup. Themaximum Priming Grant payable is 50% of the investment or €150,000 whichever is less. Grants between €80,000 and €150,000 are the exception. However, only enterprises that clearly demonstrate a potential to graduate to Enterprise Ireland can be awarded grants of this size. In all other cases, the maximum grant is 50% of the investment or €80,000 – whichever is less.Priming Grants are subject to being 30% refundable to the Local Enterprise Office i.e. if approved €10,000, this comprises €7,000 in direct grant aid and €3,000 in refundable aid (this €3,000 is to be repaid to the LEO over a period of 36 months). Eligibility Criteria

What is ‘De Minimis’ aid?

Priming grants are provided under the European Commission Regulation on ‘De Minimis’ aid. De Minimis aid is limited amounts of State aid – up to €200,000 in any three-year period to any one enterprise. De Minimis aid is regarded as too small to significantly affect trade or competition in the common market. The amounts of grants are regarded as falling outside the category of State aid which is banned by the EC Treaty and, therefore, they can be awarded without reference to the European Commission. However, a Member State must track De Minimis aid and make sure that combined aid payments from all sources to one enterprise in any three-year period respect the €200,000 ceiling. Therefore, you need to provide details of all other grant aid that has been awarded to you or your  company within the past three years. Please note that a false declaration to show a figure under the threshold of €200,000 could later mean that you would have to pay back the grant aid with interest. 

Application procedure

If you want to apply for a Priming Grant, you need to contact your local LEO. They will assess your eligibility. Applications are considered on a case-by-case basis and the level of funding will be decided after the assessment.The assessment will examine:

             the merits of providing grant support to your proposal;

           your need for financial support;

• any previous funding you have received;
• the availability of funding;

• the potential for employment and sales growth. 

Any individual or business who wishes to apply must submit a completed online Priming Grant application form along with the following:

-          Business Plan

-          online Application Form 

-          Audited accounts – for existing businesses - 2 years if trading or current trading figures to date.

-          Projected monthly cash flow & P&L accounts – 2 years

-          Quotations (3 for any outsourced capital/marketing spend items over €5k, Public tendering or 5 quotes for items over €50k)

-          Evidence of matching finance

-          Tax Clearance Certificate

If an individual or business wishes to make an application they will be requested to submit a completed online Priming Grant Application. Additional information may be requested following this. When the LEO receives all the necessary information your application will be evaluated at the next available meeting of the LEO’s Evaluation & Approvals Committee. You will then be informed of the decision. Please note that there is a short 1 question (2 minute) video interview as part of the online application. 

Expenditure incurred prior to an application being uploaded will be considered ineligible for grant aid purposes. The official acknowledgement is not an indication that the application is eligible or will be awarded grant aid. The final decision on grant assistance is with the Evaluation & Approvals Committee of the Local Enterprise Office.

After you submit your application

A staff member of the LEO will be in contact you to discuss the application. However, it is advisable to contact your LEO prior to submitting an application to discuss your individual details.

You may be asked to provide additional information.When the LEO receives all the information they need, your application will be evaluated at the next available meeting of the LEO’s Evaluation and Approvals Committee. You will then be informed of the decision. Please note that you cannot use your grant to pay for any expenditure incurred before you make the application. Also note that your submission of an application or the official acknowledgement of your application is not an indication that the application is eligible or will be awarded grant aid. The final decision on grant assistance is with the Evaluation and Approvals Committee of the Local Enterprise Office. For more information on financial supports available from the LEO including information on eligibility, please see www.localenterprise.ie

When can I access the grant funds?

If your application is approved, you can draw down your funding after you submit evidence of the expenditure detailed in your letter of offer. Also, any funding approved must be claimed within the time period on the letter of offer. To claim any financial assistance approved, you must submit the following:

• a signed acceptance of offer
• original invoices
• evidence of payment
• an auditor’s Certificate (if required)
• a claim form
• a current valid tax clearance certificate
• any other documents as set out in the letter of offer 
• please note Cash Payments & VAT are not eligible for Grant Purposes

Please note that you cannot use your grant to pay for any expenditure incurred before you make the application.

Please note that there is a short 1 question video interview as part of this application (2 Mins).

Interview Questions

1. Tell us a little bit about yourself, your business, and why you are looking for funding?

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:

• The enterprise must not employ more than 10 people;
• The enterprise must be established, registered and operate within the geographic location of the Local Enterprise Office;
• The enterprise must operate in the commercial sphere;
• The enterprise must demonstrate a market for the product/service;
• The enterprise must have potential for growth in domestic and/or export markets and also potential for new job creation.

Within the above 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 to 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
• Any expenditure incurred, prior to receipt of application form, will not be eligible for grant support.