 FAQs
1. How important is regional impact for projects? Is it possible for projects to be sub regional?
There are no requirements for projects to cover whole region, but applicants must justify the focus and approach they are taking. They must clearly show evidence of targeting hard to reach and lower performing areas. A project can also focus on one local area as long as there is regional relevance and dissemination. Explanation is needed within the application in terms of networking, information sharing, etc. Projects must also demonstrate how they will have a transformational impact. Applications need to demonstrate how a project will benefit the region in order for it to be supported.
2. If an organisation is receiving Business Link funding or SEEDA funding, is this eligible for use as match funding?
Yes, this would be public match. The funding must have a strategic fit with the ERDF programme and must be “clean”, i.e. The funding cannot have been used as match to draw down other European or domestic funding.
3. Are both capital and revenue funding eligible?
Some elements of capital expenditure are eligible, though this is a revenue focused business support programme. We are setting a clear guideline of no more than 10% of total application value as capital. For projects that are addressing retrofitting, this 10% may be exceeded, however, a clear explanation and justification must be provided.
4. If the maximum application that can be made against the programme is £2 million of ERDF for a loan fund, what is the minimum value?
There is no minimum value for project applications but a minimum of £1 million ERDF for a loan fund.
5. What brokering support service is available? What opportunities do you provide to create partnerships and what help is available?
Our networking events have given the opportunity for networking. There is also a partnering tool facility on the website for applicants to use.
6. There is an administrative burden in developing and managing an ERDF Project. From an SME’s point of view how can an SME get support for its application?
There is information provided to support you in the application form and guidance notes. The ERDF team is available on the phone and by email to support you through the technical side, although please note that the team cannot give guidance on whether your application will be successful. MCIS training will also be given to successful applicants and for each successful project a Contract Executive will be allocated to contract manage the project who will also be able to help you through your queries.
7. Is it possible to apply if a smaller business, partnership, alliance, or a new business has no financial track record?
There will be a procedure for eligibility checks. There is no requirement for 30 years of history but the eligibility form will give you an option to explain any absence of financial track record.
8. Can partners outside of the SEEDA region be involved?
Yes, but only if work is benefiting the SEEDA region. Applications involving organisations outside the SEEDA region will need to clearly demonstrate their roles and how such involvement will directly benefit the SEEDA region. It is important where your head office is based but yes it is fine to have partners from through out the region.
9. Match funding is 50% of total project value and should be provided for in the application - Does this mean all SEEDA funding has been completely used for this round? Or been withdrawn?
SEEDA will not be providing any direct match funding for this round of the programme.
10. Is there any funding available through JESSICA?
No. The minimum requirement to get JESSICA off the ground was more than the total ERDF programme is worth in the South East and the cost was therefore too high to get investments off the ground. More information is available in the Operational Programme and we are continuing to monitor developments in relation to JESSICA.
11. Is SEEDA bidding for this round?
SEEDA will not be the financial beneficiary (applicant). This position has been endorsed by the Chief Executive and Board.
12. How do you handle Intellectual Property Rights (IPR)?
The ERDF team are not experts in IPR. The templates that can be used for IPR can be found in the Lambert Agreement.
b) Can retrospective spend be claimed as match?
Yes, but with caution. We require all costs to be ERDF compliant and eligible. Publicity requirements specify that ERDF Logo’s must be used, and any retrospective activity may not have incorporated this requirement and will therefore not be compliant. Audit trails must be in place, even if your spend dates back to May 2007. Failure to use the correct logos may result in financial correction in the future.
13. When measuring the impact of the programme, will the impact outside of the region be taken into account? For example, outsourcing of production may reduce pollution from the region but may just export the pollution.
An answer for this question is currently being sought.
14. Can businesses with research and development links be located outside of the region?
Yes, as long as the work is benefiting the region and this benefit is clearly demonstrated within the application.
15. Can revenue be counted as match funding?
No, although this may be reviewed. Revenue generated must be compliant with Article 55 of the regulation (1083/2006).
16. How do we treat depreciation? Is this an eligible cost?
A list of eligible costs is given in the guidance. You can either buy something or depreciate something.
b) Can this be counted as match funding?
Yes.
17. Is there an implied weighting against smaller projects?
No. Both Programme Monitoring Committee and Project Selection Committee are keen to encourage micro and small businesses to participate. Please demonstrate why you are doing what you are doing and how this will have an impact on the region.
18. Does retrofitting apply for businesses or housing?
The increased flexibility from the Commission states that: “Expenditure on energy efficiency improvement and on the use of renewable energy in existing housing in favour of low-income households shall be eligible”. Please note the Commission does not have a Europe-wide definition of low-income.
Retrofitting businesses for resource efficiency was already eligible.
19. Is there guidance to loan funds?
Yes. Please visit, www.mcisproject.co.uk and check the ERDF User Manual chapter 15.
20. When putting in a proposal, do we apply in Euros or Sterling?
Please apply in Sterling. You will also be paid in Sterling.
21. What do you mean by value for money?
Information can be found in chapter 4 of the operational programme. Please bear in mind the exchange rates have changed and there is less value for money in the current economic climate.
22. How does the payment process work for ERDF in terms of helping a small business?
MCIS is designed to submit quarterly claims. If you are a small business you may need it faster and hence need to submit monthly. We do not have the capacity to support monthly claims for many applicants and, if successful, you should speak to your Contract Executive.
23. Do you require any specific payment terms between lead organisation or other partners?
We will not interfere among payment terms with your partnerships. Please be aware that you take into account SEEDA’s payment terms.
24. Can you get someone else to put a claim together?
Yes you can get someone else to do it but be careful. Even if you contract someone else to put a claim together, the lead partner still needs to submit it and is responsible for it.
25. Can you give us ideas as to where you see the match funding coming from?
From Local Authorities, from other non- government organisations or even central government pots which people have access to as well as staff time contributions. Some of it might be private sector.
26. What effect will a further Sterling drop against the Euro have on the programme? (i.e. the pound buys fewer Euros)
This will certainly increase spend targets in Sterling. If Sterling rises against the Euro and the programme value decreases in Sterling this would only have an impact on the scale of future rounds.
27. People are not so keen on time sheets. In the old days, there was a blanket cost, is there something like this?
No, you need to follow a procedure involving time sheets.
28. Is inflation allowed to be included in the budget?
There is nothing in the guidance to say you can’t but this would be a risk. Should you spend this money, claim it and an auditor comes in and challenges the rate of inflation, then there would be a risk.
29. Is VAT, an eligible cost for ERDF?
Yes, irrecoverable VAT is an eligible cost. When calculating VAT please bear in mind the rate will change back to 17.5%. E.g. If one has calculated VAT at 15% for three years, and the rate goes back up at the end of 2010, you cannot claim the shortfall.
30. Please explain the scoring system?
The scoring system is set out in full in the Guidance notes.
31. Who sits on the Project Selection Committee?
Representatives from Local Authority, Business Links, Federation of Small businesses, Trade Union Council, Equalities and Human Rights Commission, Environment Agency, Envirobusiness, SEEDA and GOSE. In addition, we bring in expertise to the committee, when there is a need for an expert in an area. E.g. If there’s a transport bid, we bring in a transport expert.
32. What is the definition for private match?
Private match may be defined as any match funding which does not originate from the public purse (i.e ultimately from the Treasury).
b) How do you capture this?
Private match must be capture din the same way as public match. Staff time recorded through time sheets. Applicants must still demonstrate how the money was spent and keep supporting evidence.
33. Is there a list of eligible and non- eligible costs?
Yes there is a list available in the MCIS website (ERDF User Manual Chapter 2) which will also be in the Guidance Notes. If there are any queries, please drop an email to erdfenquiries@seeda.co.uk
34. Is there interest in links to the Technology Strategy Board, and is this still a high priority?
Yes.
35. Can ERDF fund phase two of a project?
Yes, but you still need to meet audit & publicity requirements if phase one is used as match. For example, use of the ERDF logo is a requirement.
36. What are the threshold levels of funding?
There is no minimum project value for open bidding rounds, however, there will be a limit of two project approved for less than £250,000 ERDF. A maximum value of £1million ERDF per projects has been set. For the loan funds, a maximum of £2 million ERDF per loan fund and a minimum of £1 million ERDF.
37. Do you have a way of assessing a catalytic project?
Yes, it will be assessed using the same scoring methodology. A catalytic project would be expected to score highly in terms of value for money, additionality, and strategic fit.
38. Is any funding source eligible as match?
Yes, as long as it is clean money, i.e. money that hasn’t been matched by any other funding stream. E.g. Money that has been matched against ESF cannot also be used to draw down ERDF money; similarly ESF cannot be used to draw down ERDF.
39. Does State Aid apply?
Yes, all projects must be state aid compliant. We are not state aid experts, but if you have any queries please drop an email to erdfenquiries@seeda.co.uk and we will direct you to the right information.
Applications under Round two will be delivered under the de minimis rule.
40. What areas in round one have been changed for round two?
There are some areas that will not apply from round one. For example, there will be no Pre-Qualification Questionnaire in round two. If you have not applied for round one, there will be an eligibility section included in round two that will need to be filled out.
41. How much money is allocated to round two?
Approx. £7.5 million ERDF in total.
42. If match from a private sector is uncertain, can it be classed in an application form as definite?
This will be eligible only if we know where the match is coming as from and there is a commitment to providing the match.
43. If someone gives there time for free, can this be claimed as match funding?
Discounted sales of equipment, the provision of volunteers’ time, the discounted provision of services or advice (eg solicitors’, accountants’ or SME staff time) are ineligible.
b) Can staff time be claimed if it is paid at a commercial rate?
Yes, if you have procured the service in line with Public Procurement rules.
44. Has flexibility been agreed or signed off?
It has been approved the Commission and will be sent to the European Parliament to be approved in May. This will be retrospective back to the start of programmes.
45. Is there a limit on the number of partners that can be involved?
No, there is no limit on how many partners. The Programme Monitoring Committee and the Project Selection Committee are both encouraging the involvement of micro and small businesses.
46. If match comes from your own money, can this be eligible under private match?
Yes, but you must ensure that it is not a notional cost.
47. Is there a system we can use to calculate a flat rate on overheads or is there an actual cost?
Full guidance on overheads and methodologies for costing these can be found in chapter 2 (eligibility) of the ERDF user manual.
48. What constitutes confirmed match funding for an application?
Confirmation of match is down to the applicant and could take various forms, e.g. it could be a letter of confirmation. It is vital that you are satisfied that the match is confirmed before applying. We will require match funding certificates as apart of the project.
49. Involvement with business links is a requirement. Where will Business Link sit in this programme, as it was important in the last one? Can you use other routes to businesses other than Business Links?
Business Link will be the primary access route to business support provision for businesses. Should the Business Link providers change this will be a requirement that will be built into the new contracts. Although Business Link is the primary route, other routes also can be used. For example, you can use Chambers of Commerce and the Federation of Small Businesses as routes to market.
50. Given the Business Link re-contracting, will there be a continuity of function for Business Links in the South East?
Yes, there will be continuity of function.
b) Can you include Business Links in application for over a year?
You need to be aware that Business Link contracts will be recontracted during the lifetime of a three year project. This may have implications for the match being offered so if you need Business Link match you should either ask for it in the first year or find someone else for the next two years.
51. Can the intervention rates vary between ERDF and match funding? I.e. 40% match funding and 60% ERDF or vice-versa?
SEEDA will be looking for applications that are at least 50% match funding.
52. If the intervention rates have been increased, how will this be viewed when scoring?
If you raise intervention rates, it will be scored against the value for money, and will need to be justified to the Project Selection Committee (PSC). More ERDF than match will represent a significant risk to the programme, whereas less ERDF than match represents a lower risk. (Please note: SEEDA’s ERDF team does not have a voice in project selection.)
53. Can match funding come from Train to Gain or Business Links?
Yes, a written confirmation from Business Links and Train to Gain will be required confirming their match is “clean”, i.e. the funding cannot have been used as match to draw down other European or domestic funding.
54. In the strategic priorities, where loan funds are being offered to micro’s, should this be tied in with sustainability or can this be generic support?
Yes, it must fit in with the over-arching objective of promoting sustainable production and consumption set out in the Operational Programme.
55. Can we bid for something that‘s already existing and can this be classified as innovation?
Yes, though you will need to find an element of the project that’s innovative.
56. If an applicant holds some match funding in reserve, do you need to declare this at the beginning of the project?
No. It is good to have some in reserve just in case something goes wrong but this is not a requirement.
57. Do micro and small businesses have enough resources and experience to apply?
That is a concern but if an applicant gets it right from the start it will be a lot easier. Running structural fund projects generates an administrative burden, and it is important to build in administrative capacity into the project.
b) Do you think micro business can be successful?
Yes, they can and we will give all the guidance necessary. We would recommend that micro and small businesses seek to work in wider partnerships or consortia to maximise the impact of their involvement.
58. In round one, high management cost was an issue raise by the Project Selection Committee. How will you monitor this for round two?
We have set guidelines for administration costs in round two, there is a section on this within the guidance notes.
59. What is the maximum length of a project?
Three Years, i.e. 36 Months from the day the funding agreement has been issued.
60. Is there a maximum or minimum for variance?
10 -15% is acceptable. However, please remember the N+2 spend targets which mean that variances at the end of calendar years may not be able to be reprofiled. Certainly if your project is high value, the variance will be worth much more than a project of low value. If a variance is higher than the 10-15% level, it must be justified.
61. What kind of projects do you envisage for transport in round two?
The programme requires the ‘number of businesses engaged in developing sustainable business strategies’ output to be addressed in any transport proposals.
62. When will the next round be?
The next round will take place later in the year. If the N+2 target is not met by the projects selected from round two, then round three will be earlier.
63. What kind of monitoring system are you using for measuring drops in CO2 emissions?
SEEDA has previously used the Enworks system to capture this information. It is not currently clear which electronic system will be used to measure the environmental impact. This will be communicated to applicants, and training provided if necessary, as soon as information is available.
64. “Training” is an ESF activity and not an ERDF activity. How will you differentiate the training activity?
When you are trying to find a clear definition of how to build capacity in businesses there is going to be an element of transfer of knowledge. ESF deals with training for individuals. There are options of accreditations for businesses that ERDF is looking at, to bring business support.
65. Can Continual Professional Development (CPD) be counted as an ERDF activity?
No, it is an ESF activity because it relates to skills and personal development.
66. Are there any specific guidelines to on what incentive/voucher schemes can be spent on?
There are no specific guidelines but this also raises a question such as, if it can be spent on just about anything, then why should ERDF be funding it. If it is redeemable against ESF funding, it will not be eligible.
67. Can spatial targeting benefit lower performing areas?
As stated in the Operational Programme, projects should be ensuring that there is a pan-regional approach, whether this is through dissemination, a pilot project that can be transferred, region wised results or region-wide partnerships. The OP also states that the more economically successful areas should be working with the lesser performing areas in order to encourage lessons learnt and the possibility of development in those areas that need it most.
68. Do you have a summary of the lower performing areas?
Yes, it can be found in the Operation Programme and on the SEEDA website.
69. Where can we find the overall out puts for each programme?
Please refer to chapter four, in the Operation Programme.
70. How many projects got through in round one?
Eight projects in total - two sustainable construction projects, two sustainable procurement, one Reduce, Recycle and Reuse project and three projects working in the area of sustainable design and innovation. Details of these projects are published on the website.
71. Further clarification on the inclusion of retrofitting of existing housing stock.
The ERDF and ESF regulations will be adopted by the Council on 5 May: the ERDF regulation will come into effect on the 20th day following that of its publication in the Official Journal. He specifically emphasised that eligibility on housing will not be retroactive. Expenditure on housing will be eligible from the date of the modified regulation coming into force (i.e. expenditure on housing would have a different eligibility date from the rest of the programme).
72. Can capital costs exceed 10% of project value for retrofitting projects?
Capital costs can exceed 10% of the project value if the project is addressing the retrofitting strategic priority, however, this will need to be justified within the application form.
73. What has happened to the State Aid section on the Application Form? It’s mentioned in the Guidance, but there is no specific section. Has it been left out or is it missing because everything is assumed to be de minimis or are we supposed to answer this within one of the other questions?
The state aid section of the application form has been taken out. It was felt that it was not fair to ask the organisations to declare what type of state aid it should be as previously stated and therefore this aid is given under the de minimis rule and the applicants will have a responsibility to ensure that all businesses receiving support complete a form declaring the amount of de minimis aid they have previously had to ensure that this does not exceed the limit.
74. At the briefing sessions it was mentioned a part of the form which replaced the PQQ for those organisation who had not completed one before. Could you point me to where this is to start gathering the relevant information?
There is an eligibly form but however this will be completed after you have submitted your application. We will make applicants aware of this after applications have been submitted giving applicants plenty of time to complete this.
75. Can we apply under the same bid for two different priorities?
Please submit the application once but list it as hitting two of the strategic priorities in the section on the front page. This should also be made clear throughout the application process.
76. Please confirm what proportion of the match funding can be drawn down using the salary of a member of staff who is seconded to the project.
There is no set proportion of match funding that can be drawn down using salaries. As long as the project has a funding package which ensures that there is at least 50% match funding provided and all of this is eligible match, there are no proportions as to how this match is broken down.
77. Upon reading the Guidance notes we notice that on page 4 it states clearly that ‘Administration costs should not exceed 10% of total project value’. We are assuming that by ‘administration costs’ you mean overhead or other management charges rather than the total costs to resource and manage a fund for up to 10 years. Can you please confirm if this?
There is a definition of administration costs on page 16 of the guidance which also states that they can be higher than 10%, as long as there is a justification. This is a result of the last round whereby the Project Selection Committee queried a number of projects having high administrative costs. It is understood that the loan fund applications are over a longer period and therefore may need over the 10%, this just must be explained in the application.
78. Under the Ineligible Costs can you please provide a definition of “Provisions?”
The Managing Authority interpret 'provisions' as money, for example sink funds, set aside for future events or occurrences. This will be clarified in the next draft of the eligibility Chapter.
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