Capital Grants

Capital Grants

The University of Derby will offer Capital Grants for Research and Development including for decarbonisation activities. Examples of how the grants could be used include

• A contribution to the purchase of capital equipment to support research, development and capacity building for innovation within the business
• A physical/small scale demonstrator or prototype
• A contribution to the development of products and processes that have an immediate/short term market application or respond to an existing market need (i.e. research can demonstrate a gap in the market)
• The decarbonisation of the manufacturing processes
• A contribution to the purchase of capital equipment specifically linked to decarbonisation such as renewable power generation and energy storage

To be eligible to apply, companies must meet all the following criteria

• Based in Derby City (as per the City boundary map). This includes limited companies, companies limited by guarantee and third-sector organisations
• Potential for, or track record of, product, process or service delivery innovation underpinned by research and development
• Companies and third sector organisations classified as a ‘large enterprise’ may also participate in the programme. However, there must be a strong justification as to why their project should be funded and displace a small to medium sized enterprise (SME) with arguably less resource
• Be able to provide match funding for the grant. The match funding must be in place. This will need to come from private sector sources such as bank loan, asset finance, company funds or director’s loan and/or from other public funding sources (where permitted)
• Where planning permission is required, evidence of early-stage discussions with planning authorities must be in place, and full funding will be dependent on planning permission being approved
• All eligible project expenditure should be completed by 31^st December 2024

All projects will be required to demonstrate that funding support will help them achieve

• An increase in the scope, resilience and/or scale of their activity
• An improvement in organisational performance and demonstrate a positive impact towards innovation

Additionally

• The project to be delivered through this fund must not have commenced and will not be achievable in the timescales proposed without Derby Innovation Accelerator support
• Third sector/community proposals must demonstrate wider community engagement and support for the proposal
• Graduate placements as part of the project are encouraged
• Companies must be eligible for support under the Subsidy Control Act

To ensure innovation and genuine vision for the future are supported, the parameters of the capital grants strand are designed to encourage solutions beyond the mainstream of current thinking. Priority will be given to proposals that demonstrate truly innovative propositions.

It is anticipated that the fund will be oversubscribed, so projects will be prioritised and assessed against the following criteria:

• Impact in terms of innovation potential and skills development
• Replicability to other locations to share best practice methods of working
• Likelihood of success, based on previous delivery (e.g. prototypes, small-scale pilots, independent assessment)
• Longer term embedded capability
• Value for money

Funding streams

1. R&D capital grants: subject to public subsidy control rules, funding could be available for up to £20,000 per project. Up to 40% grant intervention rate (a higher-level intervention rate could be considered if an applicant demonstrates innovative proposals delivering high level outcomes).
2. Decarbonisation small grants: subject to public subsidy control rules, up to 40% grant intervention rate (eligible costs).

Capital costs including

• Plant and machinery costs
• Equipment costs
• Product development costs
• Refurbishment, fit out and/or adaptation of land and buildings
• Prototypes

All project costs must be exclusive of VAT where applicable.

Ineligible costs

The programme does not support

• Stock or ongoing operating costs
• Retrospective funding: costs incurred and/or expenditure committed before a grant is offered
• Contingency costs
• Costs which contravene state aid/subsidy control rules
• Revenue costs

Timescales/Deadlines

You cannot start your project before you apply to the programme. An in-principle offer must be issued before work or expenditure on your project can begin.

It is expected that the capital grant funds will be available on an open application basis rather than through application rounds. There is limited funding available for these grants so potential applicants are encouraged to submit their proposals as soon as possible.