Priority Access 3: Enhancing the Competitiveness of SMEs Inward (Foreign Direct) Investment Kate

Welcome Introductions Purpose of event Format: Strategic overview of European Structural & Investment Fund (ESIF) Key detail outlined in the Call European Regional Development Fund (ERDF) and how to apply The outline application form – and things to consider Housekeeping Kate

Kate

European Structural & Investment Fund Thematic Objective 3: Enhancing the Competitiveness of SMEs Foreign direct investment from outside the European Union is recognised as a key component to achieve smart, sustainable and inclusive growth. Inward investment is outlined as a key element of the Growth Programme in the Gloucestershire Strategic Economic Plan and the Gloucestershire Local Enterprise Partnership European Structural and Investment Funds Strategy. Currently 0.8% of businesses in Gloucestershire are non-UK owned. The key priority is to attract new foreign investment into the county. However, activity that also provides support to existing foreign owned businesses, facilitating growth and motivating business retention in Gloucestershire for the long term, is welcomed. Kate Refer to barriers within the call doc: Optimal levels of foreign direct investment will not be delivered in Gloucestershire if the following barriers cannot be alleviated:   Gloucestershire’s attributes as a place to invest are not being sufficiently promoted; Inward investment to the county is dealt with reactively; There is little capacity within Gloucestershire to handle new inward investment enquiries; Potential investors do not have access to the right information, contacts or networks and do not understand the regulatory and legal framework; There is little coordinated engagement with, or interaction between, existing non-UK owned businesses in Gloucestershire.

Detail In The Call £500,000 ERDF (£1M total budget)/ minimum application level £300,000 (£600,000) Target small and medium sized enterprises with a focus on the priority sectors of advanced manufacturing and engineering (with a bias towards aerospace), agricultural technology, and cyber security. Build on and add value to regional & national inward investment activity. Activity shouldn't duplicate current business support activities available in Gloucestershire. Activities could include: resource development and marketing campaign,   a creative package of support and incentives, growing and supporting Gloucestershire’s small and medium sized enterprises.   Kate National – DIT activity Regional – joint working with other LEPs e.g. aerospace collaboration with West of England and Somerset. Other business support activity – links with export, growth hub, other ERDF funded programmes – SAGE/GAIN/ GRIP etc. links with EDO function at LEP, GCC, Districts. Marketing campaign and resource development: Pulling together competent and credible information to create a competing and compelling offer for Gloucestershire; Creating the ‘sales’ message for the area; and Building up sector-specific case studies and stories. Support & incentives: Expert advice, signposting and referring; Development of collaborations with trade associations and inward missions; Promoting key development sites recently unlocked by Growth Deal support. Innovative approach – bring forward you ideas, Local Planning Orders, reduced business rates, soft landing incentives etc. SME involvement –focus on attracting new SMES, encouraging foreign-owned small and medium sized enterprises to relocate to Gloucestershire and become part of a key supply chain; Brokering relationships between foreign-owned companies and Gloucestershire-based small and medium sized enterprises. Displacement – outside of EU/UK

European Regional Development Fund The application process Priority Axis 3, Investment Priorities 3c and 3d Top tips for a strong application Sian 20XX

The ERDF Process Outline Application (closing date – 10th November 2017) Assessment - ESIF Sub Committee - Managing Authority decision Full Application (approximately 6 weeks) Meeting - Appraisal (iterative) - ESIF Sub Committee - Managing Authority decision Grant Funding Agreement (GFA) pre-GFA conditions - GFA completion – contract conditions Project Inception Visit (PIV) and On the Spot Verification (OtSV) Project Management Claims – on-going compliance (potential audit checks / visits) Sian Claims – retrospective payments on a quarterly basis. Audits, output evidence, document retention – guidance on audit & management & control requirements.

ERDF - Priority Axis 3 Enhancing the Competitiveness of Small and Medium Sized Enterprises Investment Priority 3c: supporting the creation and the extension of advanced capacities for products, services and development. Investment Priority 3d: supporting the capacity of small and medium sized enterprises to grow in regional, national, and international markets and to engage in innovation processes. - The indicative actions to be supported by European Regional Development Fund Under investment priority 3c can be found on pages 85-87 and 3d on pages 92-94 of the ERDF Operational programme Sian 20XX

ERDF PA3 output definitions C1 Number of enterprises receiving support (C2 C3 C4 C5 are a subset of C1) C2 Number of enterprises receiving grants C3 Number of enterprises receiving financial support other than grants C4 Number of enterprises receiving non-financial support C5 Number of new enterprises supported C6 Private investment matching public support to enterprises (grants) C7 Private investment matching public support to enterprises (non-grants) C8 Employment increase in supported enterprises C29 Number of enterprises supported to introduce new to the firm products P2 Public or commercial buildings built or renovated P13 Number of enterprises receiving IDB support Sian

Top Tips for a strong application Address the call; investment priorities, local need for activity, required outputs… Understand the difference between delivery, strategic and collaborative partners Ensure proposed activities are eligible As ERDF is the fund of last resort, ensure you demonstrate additionality Understand where your match funding is coming from and how it will work Be realistic about outputs and deliverability Understand indirect and direct costs, and the 1720 simplified cost methodology Ensure that procurement processes are EU compliant, not just UK compliant Consider GBER (not just de minimus) when identifying state aid routes If invited to full application, think granular detail… Sian & Kate Match funding – 50%, SME contributions/ income generation (e.g. vouchers) Outputs - be realistic especially considering SME focus Deliverability – three years Procurement & publicity

Summary of Key Points Detail in the call Detail in the ESIF Strategy Clear & concise application Don’t be scared by the regulations – just needs good planning Utilise the Technical Assistance Support: Kate Hull 01242 715471 Kate.hull@gfirstlep.com Kate

Questions? The ERDF Technical Assistance Project is supported by the 2014 to 2020 European Regional Development Fund Programme Kate