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ERF Phase 3 investment examples

Project 1 – Retail Unit refreshing and renovating the storefront and interior ready for reopening

A store which has experienced a significant downturn in trade due to local restrictions, followed by being forced to close as non-essential retail decides to use the time to refresh the storefront and renovate the interior. The company brings in a specialist firm to revamp the front of the store and advise on layout, and uses existing staff to implement the changes.

The overall project cost which includes consultancy fees, materials (paint, shelving etc.), staff time and utilities to keep the location open while not trading, is £70,000. Half the staff are placed on the Job Support Scheme and the other half on the changes to the business.

The company employs 50 people, and makes an application for the whole amount. Due to being forced to close the grant is £70,000 at 100% intervention rate.

Project 2 – Digital Development for automated manufacturing systems and e-purchasing

Manufacturing company employing 20 Full Time people purchasing a cloud based stock management system integrating into the manufacturing process, which will lead to increased efficiency and the ability to increase manufacturing capacity. The project will create 3 new jobs 2 of which are ringfenced for under 25 year olds.

Project cost is £60,000 and involves licencing costs, new IT hardware (laptops), training and consultancy for software integration.

Application amount would be for £54,000 (90% intervention rate), but the Value for money would be £50,000 (20 people x £2,500) and an additional £2,000 (£1,000 per new job) for the under 25, making the grant award £52,000.

Project 3 – Food manufacturing company diversifying into consumer sales instead of Business to Business

Cheese manufacturer based in Ceredigion, employing 83 people heavily impacted by the drop in sales to businesses (hotels and retailers) and looking to sell direct to consumers via own premises and mail in the UK and overseas. 

The project is seeking funding to develop a website, some changes to their premises for visitors, equipment to allow packaging for mail delivery of chilled goods, and a new software system for export regulations post EU Transition. The project would lead to increased turnover and exports, safe-guarding of 70 jobs and the creation of a further 2 jobs.

Company is classed as a medium SME as headcount is 83, which means the maximum grant available would be £150,000.

The combined total cost of the project is £116,000, which would then be eligible for £92,800 based on an 80% intervention rate as the grant requested is over £50,000.

Project 4 – Retail location in the Rhondda selling local arts and crafts

Retailer employs 5 people, and has an already established online business but the new Covid restrictions has limited the amount of people who can enter the local store.

The project is seeking to make adjustments to the layout of the store including the installation of permanent screens and shelving structure to allow for social distancing. They are also looking to install an EPOS system to link to their online business. This will safeguard jobs and lead to additional turnover and an investment induced of £6,000.

Due to the number of employees, they are classed as a micro business with a maximum grant of £10,000.

Project costs are £16,000 all of which are classed as revenue as the changes are improving the building and not changing the asset value on the balance sheet. The applicant applies and is awarded the full £10,000.

Examples of eligible Tourism and Hospitality project expenditure

Golf Club

A golf club has experienced significant downturn in revenues due to Covid related restrictions and requires £40,000 to support working capital requirements for the next 3 months. Without this money the club will close. The grant support will be used towards operational revenue running costs associated with maintenance and development of the course. Staff will be maintained to carry out remedial work on greens 4 and 8; the fairway on the 16th requires widening and the Ladies Changing rooms require a new coat of paint. All costs that would be charged to the profit & loss for the business would be eligible.

Wedding Venue

The wedding venue has been closed due to restrictions placed upon the sector. It requires support as it is in hibernation until restrictions can be lifted. Whilst in hibernation the owners plan to re-configure the layout of the venue to help make it compliant with the Covid regulations and also to develop or extend their outdoor wedding reception area in a Covid secure way. This will maximise the potential of the business if restrictions remain on in-door bookings. In addition it plans to invest in an outdoor marque, capable of opening 3 sides, with heating. The cost of purchasing the new equipment together with all revenue costs associated with this development project would be deemed eligible.

Market Town Restaurant

The business is classed as a micro business as it employs 3 full time and 6 part-time jobs. It applies for £10,000 grant to support the costs of a range of a new digital and online platform. The work will be led by a consultant providing specialist support and also the development and purchase of a new online booking platform for customers that will enable orders to be placed remotely. The system will allow the business to better comply with track and trace requirements. All revenue costs associated with the project would be deemed eligible together with any staff training requirements to enable smooth roll-out of the new technology.


A hotel is experiencing significant downturn in revenues and will close if financial support is not provided to cover the next 5 month period. Financial reserves suggest that there will be a funding shortfall of £70,000 to keep the business open during that period. A core staff compliment will be maintained to cater for the lower customer levels. They will also continue to work towards the maintenance of the hotel, and in particular the unused capacity such as empty rooms, in order to ensure that it is capable of returning to optimum service levels when restrictions are lifted. All revenue costs associated with maintaining this level of capability will be deemed eligible.     

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