Scotland Rural Development Programme (SRDP) 2014-2020 Stage 2: Final Proposals

Section 12: Non-Agricultural Business Support: Small Rural Business Support

Introduction

260. As part of our support to the non-agricultural sector in rural Scotland we are also proposing to make available a dedicated funding stream for small rural businesses to access. This will include support for farm diversification and social enterprises. This will not be open to businesses within the food and drink sector who should apply to that specific scheme (see section 13).

Legal basis

261. Article 20 of the RDR sets out the legal framework for investments in non-agricultural businesses. Article 46 sets out the eligible expenditure for investments. Articles 57 and 59 of the Common Provisions Regulations set out the forms of grants and the eligibility rules.

Rationale

262. The SWOT identified the need to address the low birth rate of businesses in rural Scotland. This support will aim to increase the amount of business start-ups. It will also provide much needed access to finance for non-agricultural rural businesses, helping them to sustain and develop.

Scope

263. In the EU regulations small businesses are those who have fewer than 50 employees and an annual turnover/balance sheet that does not exceed €10 million euros.

264. The funding will be open to businesses in rural Scotland who are engaged in an economic activity, irrespective of its legal form. This will include self-employed persons and family businesses, social enterprises, and farm diversification projects. The rural area location of the beneficiaries will be an eligibility condition.

265. Start-up support could be provided to existing businesses as well as new start-ups. If support is provided to existing businesses it will only cover activities never carried out by the enterprise in question at the time of applying for support.

266. The funding available will be in the form of start-up grants for new enterprises, and business development grants for tangible and non-tangible investments.

Form of grants

267. Grants will be assessed on the basis of the business plan supplied. We may apply criteria to focus the support on key sectors where this is believed important to secure maximum value from the investments we make.

268. The start-up grants for new enterprises we are making available will be up to a maximum of €70,000 (as required by EU regulations) and may fund the following types of investments:

• Rural tourism activities or activities linked to territorial economic development, including rural accommodation, tourism service provision, catering, transport, shops, restaurants, cafes, etc.
• Social service provision including construction, re-construction and/or modernisation of premises and area for carrying out the activities (childcare, eldercare, healthcare, care for disabled people, educational farms, etc.);
• Provision of services to all economic sectors, including agriculture and forestry, or to the rural population;
• Development of crafts and handicraft activities;
• IT activities, computer-based and electronic activities, e-commerce, etc.;
• Architectural and engineering activities, accounting, book keeping and auditing services, technical services, industrial cleaning, veterinary activities, etc.

269. The business development grant for existing businesses may fund the following:

• Rural tourism activities or activities linked to territorial economic development, including rural accommodation, tourism service provision, shops, restaurants, local supply and food, etc.
• Catering, transport, road safety services, services for protected areas, security services, gardens/park management services, etc.
• Construction, re-construction or establishment of workshops, factories, plants, premises and facilities for various purposes such as repair of machinery; production and/or processing of non-agricultural goods and materials, plastics, electricity, energy, gas, steam and hot water supply businesses, sewage and refuse disposal, sanitation and similar activities; renewable energy production and inter-linked activities, etc.;
• Social service provision including construction, re-construction and/or modernisation of premises and area for carrying out the activities (childcare, eldercare, healthcare, care for disabled people, educational farms, etc.);
• Provision of services to all economic sectors, including agriculture and forestry, or to the rural population;
• Development of crafts and handicraft activities;
• Investments in leisure, recreational and sport activities developed by private businesses;
• IT activities, computer-based and electronic activities, e-commerce, etc.;

• Architectural and engineering activities, accounting, book keeping and auditing services, technical services, industrial cleaning, veterinary activities, etc.;

270. We are considering making advances in aid available where appropriate.

Budget allocation

271. We have allocated £20 million for this support.

Links with other activity

272. This support will complement that provided to the food and drink sector, and the support available from other EU funds. To ensure this is the case we are exploring joint delivery agents, using organisations with relevant expertise to assess applications for support.

Question 23

How would you rate your broad satisfaction with the proposals for Small Business Support?

Please tick the appropriate box in the online questionnaire.

Very satisfied
Quite satisfied
Neither satisfied nor dissatisfied
Quite dissatisfied
Very dissatisfied

If you are dissatisfied please briefly outline your reasons (in the space given in the online questionnaire).