Capital Investment Initiative (CII)

Overview of the Capital Investment Initiative (CII) Fund

The aim of the Capital Investment Initiative (CII) is to assist Enterprise Ireland client companies improve productivity and competitiveness through the acquisition of new capital equipment and technology. The fund provides grant support up to a maximum of €250,000.

 

Am I eligible?

You are eligible to apply for the CII if you:

  • Are a Small to Medium Sized Enterprise (SME) as defined by the Official Journal of the European Commission
  • Are a manufacturing and/or an internationally traded services company
  • Have 10 or more full time employees in Ireland at the time of application
  • Have been generating sales for at least 5 years
  • Have not received approval under the fund in the last three years
  • Companies submitting an application must be EBITDA positive in the previous accounting period or; for at least the previous nine months prior to application and can demonstrate sustainable future EBITDA.

 

Eligible Projects

The Capital Investment Initiative will support the activities which meet the following criteria:

      • Demonstrate the potential to increase output by way of productivity or value add while maintaining or increasing employment in the company in the longer term.
      • Demonstrate the potential to increase international trade.
      • Are submitted by Irish based firms in manufacturing and eligible traded service businesses.
      • Clearly show how the company plans to undertake the project, particularly in relation to the resources required to develop the project.

 

Eligible Costs

Capital equipment

 

Eligible Assets:
      • New or second-hand equipment including reasonable direct installation costs. Second hand equipment must be less than 7 years old and more than €10,000 in value. Refurbished equipment will be evaluated on a case by case basis by Enterprise Ireland Assessors.
      • Computers used in the production process and in the Services Industry where the service is internationally traded.

 

Ineligible Assets:
      • Expenditure on buildings, building modifications, mobile assets, transport and office equipment e.g. desks, chairs, filing cabinets, computers for administration, forklifts, cleanrooms, insulated panels and doors, refrigeration and building services. (This list is not exhaustive but reflects some of the key items that are not eligible).
      • Software directly relevant to routine business activities such as payroll systems, accountancy packages. e.g. ERP and SAGE.
      • Software licences
      • Consultancy
      • If any expenditure is incurred before the Call Close date, the entire project will be ineligible for support. This includes the payment of deposits or where contracts are entered into by the applicant company.
      • Investment in training and salaries.

NOTE: The grant claim is based on the costs of equipment excluding VAT.

 

Purchase of Eligible Assets

Where the grant-aided assets are purchased by the company, the grant may be claimed when verified eligible expenditure has been incurred and paid by the grantee. In this instance, the equipment claimed must be installed in the company premises and the company must hold valid title to the assets. It is not permitted to subsequently lease assets on which a capital grant has been paid to a grantee.

 

Leasing & Hire Purchase

If the company wishes to lease the capital assets from a lending institution or enter into a hire purchase agreement, the costs (principal only, excluding interest and any other costs) will be regarded as eligible expenditure.

If the title to the asset does not transfer to the company at the end of the lease period any grant payment made must be repaid to Enterprise Ireland.

The grant payment of the lease and hire purchase to be paid in arrears (that is, after repayment costs have been made by the company) and the company can make a maximum of one grant claim per year.

 

Technology Acquisition

Technology acquisition is the process by which a company acquires the rights to use and exploit a technology for the purpose of improving or renewing processes, products or services. It does not include retailed or mass market off-the-shelf software which is generally governed by non-negotiable “shrink-wrapped” licences. Support for technology acquisition is designed both for business-to-business technology acquisition and for technology that may come from a university or research organisation.

Companies applying for funding for technology acquisition under this Fund will be required to have carried out sufficient due diligence to have identified the technology they wish to acquire. As part of the application the applicant company will also have established the proposed terms of the licence agreement between the partners and provide an informed estimate of the costs involved. The company will be required to demonstrate how the technology acquisition can lead to improvements in competitiveness and productivity. The technology acquired must be ready to be applied to the production process.

 

Eligible Expenditure:
      • Licence cost - Down-payment and an agreed number of phased payments for the purchase of a licence over a maximum period of two years.
      • Purchase of patents over the same period.

 

Ineligible Expenditure:
      • Patent filing.
      • Royalty payments.
      • Professional fees to cover technical, commercial and legal due diligence.
      • Licences associated with the sales of products/services that restrict sales to within the Irish market.
      • Retailed or mass market off-the-shelf software which is generally governed by non-negotiable “shrink-wrapped” licences.

If there is a capital element associated with the project, then these costs may be eligible for support under the Fund as outlined in the relevant sections.

Companies may avail of consultancy advice from Enterprise Ireland’s Technology Transfer Unit to assist them carry out their due diligence on the technology acquisition. The Development Adviser can provide further assistance.

 

What is the Maximum Funding Available?

The maximum grant support available per company application is €250,000. The minimum is €20,000. The grant rates are determined by the size and location of the project as per the table below.

RegionSmall FirmMedium Firm
Cork, Dublin, Kildare (excl. Athy), Meath (excl. Kells), Wicklow (excl. Arklow)20%10%
All Other Regions30%20%

Other factors influencing the funding levels include the need for financial support and anticipated growth rates.

 

How do I Apply?

You are strongly advised to consult with your Enterprise Ireland Adviser before submitting an application. If you are not a client of Enterprise Ireland, please contact your local Enterprise Ireland office to discuss eligibility criteria.

Applications and associated documents must be submitted via email and include the following:

To be a valid application, a completed Business Application form AND the Project Cost sheet must be submitted together by 6:00PM on the Call Close date to GA-CapitalInvestment@enterprise-ireland.com. Clients should note that this is not a secured e-mail transmission.

Receipt of the application will be acknowledged by Grant Applications (GA) within 3 days.  If after this period you have not received acknowledgement then you should contact GA by e-mail: GA-CapitalInvestment@enterprise-ireland.com

 

Approval Process and Duration

The approval process takes circa 8 weeks. The projects are assessed by the CII Committee based on the company's application, financial information and a Commercial Assessment of the project.

 

Call Close Date

The Call close dates for 2018 are listed below:

  • 13 Feb 2018
  • 20 March 2018
  • 17 April 2018
  • 15 May 2018
  • 19 June 2018
  • 17 July 2018
  • 14 Aug 2018
  • 18 Sept 2018
  • 16 Oct 2018
  • 13 Nov 2018
  • 11 Dec 2018

The deadline for applications is 6pm on the above date. Applications received after the 6pm deadline will not be accepted.

 

Key contact/more information

Clients of Enterprise Ireland should contact their Enterprise Ireland Adviser. If you are not a client of Enterprise Ireland, please contact your local Enterprise Ireland office to discuss eligibility criteria.

Enquiries relating to the submission of your application can be directed to:

Financial Products Helpdesk

+353 1 727 2799

Financial.products@enterprise-ireland.com


SME definition: http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en