DAERA: Rural Social Enterprise Investment Scheme
Overview
The Rural Social Enterprise Investment Scheme is a pilot Scheme, funded by the Department of Agriculture, Environment and Rural Affairs which will provide a grant to established Social Enterprises to increase their capacity, potential profitability and sustainability whilst supporting those who live in rural areas.
Grants of between £50,000 to £100,000 are available to Social Enterprises who meet the scheme qualifying criteria and are successful in a competitive process:
- The Scheme will target established Rural Social Enterprises who have been trading for more than two years.
- The project must be located in a rural area.
Definition of a Rural Area
For the purposes of this Scheme rural is defined as all those areas outside the statutory development limits of those towns with a population in excess of 5,000 inhabitants - Rural Definition Sheet.
What is a social enterprise?
A social enterprise is a trading business (i.e. selling goods and services) with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.
Social enterprises are different from those charities and voluntary organisations who do not have financial independence through trading income.
The social enterprise should be a legally incorporated body with Memorandum and Articles of Association / Governing Documents. A legally incorporated body can take a number of various forms including limited company, company limited by guarantee, registered charity, charitable incorporated organisation (CIO), community interest company (CIC), co-operative and community benefit societies, credit unions, sole trader or business partnership. It must be distinct from the public sector and cannot be the subsidiary of a public body. A Social Enterprise should also have a Governing Board of Directors.
What is meant by established social enterprises?
Established Social Enterprises are defined as enterprises currently trading, and have been trading for at least 2 years, evidenced by 2 years trading accounts.
What does financial independence mean?
Financial independence means that the majority of funds in the business are raised through trading activities and not from grants or fundraising.
What evidence do you need to demonstrate rural benefit?
The focus of this call is on rural social enterprise. It is expected that applications will come from organisations operating in and supporting rural areas/communities. In exceptional circumstances consideration will be given to projects where population numbers fall into urban centres and where it can be demonstrated that most of the benefit from the project is directed to rural areas or communities. Depending on the nature of the project you may be asked to account for the numbers using the service and how it benefits rural. It is recommended that you seek advice from ruralsocialeconomy@daera-ni.gov.uk prior to completing your application. [insert DAERA weblink to Rural Definition].
How much money is available for the scheme?
The scheme is designed as a pilot with an initial budget in the region of £500,000.
What is the percentage of grant?
Grant will be paid at 80% of eligible project costs up to a maximum grant of £100,000, the 20% match funding must be in cash. The minimum grant payable is £50,000. For reference, your eligible project costs will be £62,500 for grant of £50,000.