Regional Selective AssistanceApplication form

Introduction

Regional Selective Assistance (RSA) is a grant towards projects aimed at increasing or safeguarding employment in Scotland. RSA is a discretionary scheme targeted at projects which serve wider than simply a local market. All projects must meet the scheme criteria that are outlined below (subject to any EC restrictions).

Do not submit this application unless you can answer Yes or N/A to all of the questions below.

Project Criteria Answer Yes/No/N/AWill the project take place in a location where the applicant is eligible for support?*

Yes No

Is it aimed at more than a local market? Yes No Will it involve capital expenditure on fixed assets? Yes No Will the project and underlying business be financially viable and profitable within three years?

Yes No

Will most of the funding come from internal/external private sector sources?

Yes No

Can you explain why grant is needed to enable the project to proceed? Yes No I am a large enterprise and have completed Section 10 of the Application Form

Yes No N/A

*To check whether a specific location falls within an eligible area log onto:

http://www.scottish-enterprise.com/services/attract-investment/regional-selective-assistance/whats-involved

General guidance

This form has been designed to capture most of the information required to appraise the application. However, we may ask for additional information during the appraisal process. If a Business Plan has been prepared you may cross-reference the application to this. Please quote specific references and only do so if the Business Plan explicitly provides the information required. If any questions are not applicable, write N/A rather than leaving a blank space.

Work on your application will not start until it is considered fully documented. During the appraisal we may ask for clarification on some aspects of your application and there may be some benefit in a further meeting or visit to local premises.

This form is straightforward to complete and, as you know your own business best, there is no requirement to employ the services of an external consultant, although you can of course use one if you wish.

RSA can only be offered where it will make a difference between the project going ahead or not. We cannot offer RSA when the applicant has made a prior commitment to the project, i.e. where we believe the project will proceed regardless of grant support.

The form must be signed in pen and either posted to us at the address at the back of the form or scanned and sent by e-mail to rsa@scotent.co.uk.

Section 1 – Applicant details

Any personal data collected here will be used and stored in accordance with SE’s privacy notice.

1.1 Applicant’s business name and addressName Company registration number (if UK registered)Website Registered address

Trading address including postcode (if different from the above)

1.2 Company contactName Position Telephone Email

1.3 Financial advisor/consultant (if an external advisor assisted in the completion of this form)Name Position Telephone Email

1.4 History and principal activities of the ApplicantFounded/incorporatedKey activities: Describe what it is the

business does

History of the business Recent developments Any changes in

ownership Recent capital investment Changes in strategy Changes in employment

levels Acquisitions and

disposals

1.5 Previous RSA applications (including those by other group or related companies) Date Company Amount

1.6 Directors/partners Name Position % Shareholding

1.7 Major shareholders Name % Shareholding

1.8 Small or Medium Sized Enterprise (SME)

We have scope to provide greater assistance to SMEs, as defined by the EU

A small-sized enterprise is one which has less than 50 Full Time Equivalent employees and has either an annual turnover or total assets of less than €10m.

A medium-sized enterprise is one which has less than 250 Full Time Equivalent employees and has either an annual turnover of less than €50m or total assets of less than €43m.

A large-sized business is one which does not meet the above criteria. If you believe your business to be a large business, please ensure you complete Section 13.

The following information helps establish whether the business is an SME. (No need to complete if the business is a start up).

Please detail permanent employees at all business locations:

Two most recent year ends

Hours per weekDate of application Last year end Previous year end

Number of staff Number of staff Number of staff0-15 hoursOver 15 to 30 hoursOver 30 hours TotalAnnual turnover as shown in most recent year end accounts £

Total assets as shown in most recent year end accounts £

In considering the size of an applicant, we also need to check related companies – these are called “partner enterprises” and “linked enterprises”.

1.9 Does the Applicant have any Partner Enterprises?

It holds 25% or more (but no more than 50%) of shareholding/voting capital of another enterprise; or

25% or more (but no more than 50%) of its shareholding/voting rights are held by another enterprise.

Yes No If YES, please provide details. If easier, provide a group structure in a separate attachment

1.10 Does the Applicant have any Linked Enterprises?

It holds more than 50% of shareholding/voting capital of another enterprise; or More than 50% of its shareholding/voting rights are held by another enterprise

Yes No If YES, please provide details. If easier, provide a group structure in a separate attachment

1.11 Is your Company a member of a Group?

Yes Go to Section 2

No Go to Section 3

Section 2 – Group details

2.1 Immediate parentNameCountry of registrationRegistration numberRegistration dateRegistered address

2.2 Ultimate parent (if different from above)NameCountry of registration Registration numberRegistration dateRegistered address

2.3 Employees Total number of Group employeesOf which are based in UK

2.4 Principal Group activities

2.5 Group trading results (for the most recent trading year)

Year End Total assets£000

Turnover£000

Pre-tax Profit£000

DD/MM/YYDetails of inter-company transactions of/with the applicant including products/services, level of trading, etc.

Section 3 – The Project

RSA can only be offered where it will make a difference between the project going ahead or not, and so you should not commit to the project before you receive an offer of grant.

3.1 Project descriptionPlease provide a full description of the project. Mention for example:- additional production

facilities- extension of premises- new products- new geographic markets- improved productivity etc.

Expected start date

3.2 Project rationale Explain why the project is

being undertaken and what it is hoped to achieve (access to new markets, productivity improvements, increased profit) initially and in the longer term (e.g. five years from now)

Explain what alternatives to the proposals have been considered

Discuss the likely consequences of not proceeding with the project

3.3 Proposed capital expenditure Confirm that the table at Annex 1 or 2 (Capex Table) has been submitted

Yes No

Total must agree to Annex 1 or 2 (Capex Table)

£

Explain why these items are being purchased: What new capability will it

give the business?

How will they improve efficiency/productivity?

How and to what extent will they enable you to increase capacity?

3.4 Will this project have a positive impact on the environment?

3.5 Project location, including postcode

3.6 Project premises Existing New

Owned/LeasedLandlordSizeAnnual rent (if applicable)Lease term/expiry date

Section 4 – Customers & markets

4.1 Market conditions for proposed project

What are the growth prospects for the overall market and the Company?

Thinking about the market conditions being targeted by the project over the last three years, would you say that market conditions have? Declined strongly Declined moderately Are about the same Improved moderately Improved strongly

4.2 Competitors

Please provide an estimate of competition in the market targeted by the project:All the businesses we compete with are based in ScotlandThe majority of the businesses we compete with are based in ScotlandAround half of the businesses we compete with are based in ScotlandA minority of the businesses we compete with are based in ScotlandNone of the businesses we compete with are based in Scotland, or I have no direct competitors

Approximately what percent of your main competitors are based in Scotland?                

List the five largest competitors. These should relate to project activities.

Name Location

Describe what the impact of this project will be on the competitors listed above and why?

Explain what differentiates your product/service from the competitors listed above

4.3 Main products/service categories Using the table below, show the sales and related percentages of each main product/service category for the last two completed financial years and the anticipated split during the forecast period.

Actual ForecastYear End DD/MM/YY DD/MM/YY DD/MM/YY DD/MM/YY DD/MM/YYProduct/Service £000 % £000 % £000 % £000 % £000 %

Total Sales 100 100 100 100 100

Projects which serve mainly a local market do not qualify for RSA as these are likely to displace jobs elsewhere in assisted areas.

Commentary on changes in sales by product/service line:Actual

Forecast

4.4 Customers

List the five largest customers in the last two completed financial years, and the value of sales to them in that year. If any customers are expected to take more than 10% during the forecast years, provide their names and annual sales.

Actual ForecastYear End DD/MM/YY DD/MM/YY DD/MM/YY DD/MM/YY DD/MM/YY

Name Location (Town) £000 % £000 % £000 % £000 % £000 %

Total from key customersTotal from other customersTotal Sales 100 100 100 100 100

Total International Sales

If any new names appear in the forecast list, please explain how their (increased) custom will be gained.

If any existing customers do not appear in the forecast list, please explain why their custom is expected to reduce.

Please describe any anticipated changes in % of sales exported outwith Scotland as a result of the project

As a result of the project will you make sales in new geographic markets (different from current locations you sell to)?

What additional sales and marketing activity will be undertaken? What experience does the company have of this? What additional resource will be required in this regard?

4.5 Supply chainWhat is your current annual spend on Scottish-based supply chain?

What is your estimated annual spend on Scottish-based supply chain in three years time as a result of the project?

Do you pay your suppliers promptly?

Section 5 – Employment at Project Location

Please complete this section in terms of Full-time Equivalents (FTE)

Full-time job (FT) = 30 hours or more per week

Part-time job (PT) = 15 hours or more per week

Two part-time jobs of 15 hours or more per week = one FTE

Include only permanent personnel directly employed by the applicant at the project location. Do not include self-employed, sub-contracted or temporary personnel working predominantly outside Assisted Areas e.g. field sales posts.

5.1 EmploymentTotal company employmentEmployment at project location at date of application

5.2 Forecast total employment at project location Financial Year End With Project Without ProjectDD/MM/YYDD/MM/YYDD/MM/YYDD/MM/YYEmployment created

Employment safeguarded

Why will the project protect these positions?

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5.3 Analysis of all existing jobs held at the Project Location, together with employment impact of the project 

  A        B  C    A+B+C 

 Total jobs

before project 

Existing positions

safe- guarded 

Basic average annual salary 

Hourly rate of pay* 

New jobs created as a

result of project 

New jobs created

regardless of project 

Estimated start date for new

jobs Total jobs

after project Job title  Number (FTE)  Number (FTE)  £  £  Number (FTE)  Number (FTE)  MM/YY  Number (FTE)                                                                                                                                                          

                                                   Total Jobs                  *We can only support project jobs with an hourly rate of pay at or above the Real Living Wage (https://www.livingwage.org.uk/what-real-living-wage)

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5.4 Key personnel – Provide details of all key personnel, excluding the Directors/Partners listed in Section 2 and covering areas such as Finance, Sales & Marketing, Production, etc.

Name Current Position

Summary CVs/bios should be provided for all key personnel as well as for every Director. These should contain at least the following information: full name, current position, date appointed, professional qualifications, a summary of career history (including key dates) and a list of all directorships held within the last five years. This information will be taken into account in assessing the financial and commercial management of the business.

Section 6 – Fair work practices and inclusive growth

Please highlight, if applicable, the potential for the project to have a positive impact on youth (16-25 years) employment.

Provide details of any existing jobs within your business which do not currently pay the Real Living Wage.

Will this change during the project?

Does your business use zero-hour contracts? Yes/ No

If yes, provide details of: - the circumstances in which they are used; and- any differences in terms and conditions in

comparison to other employees

If your business has more than 250 employees in the UK (including group companies), please confirm that you have reported your gender pay gap on www.gender-pay-gap-service.gov.uk.

Yes/ No/ N/a

All companies which are awarded RSA will have the opportunity to work with our specialist teams to review their approach to Fair Work. This will include:

ensuring transparency on the gender pay gap and developing an action plan to close the gender pay gap if appropriate;

only using fairly negotiated zero-hour contracts developing an Invest in Youth policy, which

includes setting a target for youth employment as a percentage of the workforce

Please confirm that you would be willing to work with our teams in these areas?

Do you engage with your local community?

For further details on these Fair Work terms see https://scottishbusinesspledge.scot/

Section 7 – Financial Information

All applications should be accompanied by financial projections for the current year (Year 1) and at least two further years. If the benefits of the project are not expected to feed through until Year 4, for example, the projections should be extended to include this period.

Projections should exclude any RSA applied for.

All projections should be prepared for the business as a whole, not just the project. We may request group information, if required.

Please complete the appropriate Financial Appendices Workbook for the level of grant that you are requesting. Alternatively, for grant requests up to £250,000, you may provide your own projections provided that they are in an appropriate format and comprise profit and loss, cashflow and balance sheets.

If your case for assistance is based on the need to fill a funding gap (see Section 8) and the maximum gap does not occur at the financial year end, then please provide monthly projections to support your application.

Complete the boxes below with summary information. These figures must match those in the financial appendices/projections.

7.1 Enter Company trading results for the past two completed years and forecasts for the next three years (four if required)

Actual£’000

Actual£’000

Forecast£’000

Forecast£’000

Forecast£’000

Year End DD/MM/YY DD/MM/YY DD/MM/YY DD/MM/YY DD/MM/YYTurnover Direct labourOther direct costsGross ProfitOverheadsEBITDA1

DepreciationEBIT2

InterestProfit before tax

Gross profit margin (%)Net profit before tax margin (%)

1 Earnings before interest, tax, depreciation and amortisation2 Earnings before interest and tax

7.2 Analysis of past trading results

What were the main influences on turnover (e.g. new products/new business/market changes)?

What were the main influences on gross profit margins?

What were the main influences on overheads, net profit margins?

7.3 Analysis of forecast trading results

Why are sales expected to grow?

What are the main influences on gross profit margins?

What are the main influences on overheads, net profit margins?

7.4 Analysis of forecast working capital

What are your assumptions for trade debtor and creditor payment terms, and movements when comparing actual to forecast periods?

What are your assumptions for movements in stock balances when comparing actual to forecast periods?

Please explain any movements in other debtor and creditor balances during the period and working capital as a % of sales?

7.5 Analysis of forecast cashflows

What is the peak funding gap?

Please provide details in relation to any non-project capital expenditure

Discuss any exceptional items or other relevant issues

7.6 Project funding

Provide details of additional private sector financing for the project.

Amount Finance provider Terms (e.g. repayment period, interest rate)

Stage in discussions

Provide details of any public sector assistance for the project, e.g. from your council

Section 8 – Case for RSA

8.1 Request for Assistance

Grant is needed to: (Place x in appropriate boxes)

Provide a full explanation for the boxes ticked below.

Fill a gap in funding       e.g. refer to overdraft limits, funding gap(s) in cashflow forecasts.

Reduce gearing/risk       e.g. refer to impact on existing gearing of proposed new debt funding, risk of targeting new customers/markets

Meet established investment criteria       e.g. Payback, Internal Rate of Return

Influence the location of the project       Include alternative location costs, risk assessment, sensitivity analysis etc

What would be the likely effect on the project of your not obtaining a grant?

8.2 Level of Assistance

Amount of grant sought

Explain how the amount of grant requested has been calculated

Section 9 – Declaration and understanding

9.1 Have you, or any other partner or director of your business, ever been disqualified from being a company director under the Company Directors Disqualification Act (1986) or been the proprietor, partner or director of a business subject to an investigation (completed, current or pending) undertaken under the Companies, Financial Services or Banking Acts?

Yes No

If Yes, please give details on a separate sheet of paper. This does not necessarily affect your chances of obtaining RSA.

9.2 Have you, or any other partner or director of your business, ever been bankrupt or subject to an arrangement with creditors?

Yes No

If Yes, please give details on a separate sheet of paper. This does not necessarily affect your chances of obtaining RSA.

9.3 Have you, or any partner or director of your business, ever been a proprietor, partner or director of a business subject to any formal insolvency procedure such as Receivership, Liquidation, Administration or was subject to an arrangement with creditors?

Yes No

If Yes, please give details on a separate sheet of paper. This does not necessarily affect your chances of obtaining RSA.

9.4 Have you, or any partner or director of your business, ever been a proprietor, partner or director of a business requested to repay grant under any Government scheme? This includes any company requested to pay grant while subject to any insolvency procedure, where the director/company secretary knew or ought reasonably to have expected that any request to pay grant could be made?

Yes No

If Yes, please give details on a separate sheet of paper. This does not necessarily affect your chances of obtaining RSA.

Section 10 – Large company declaration (to be completed by non-SMEs only)

There are additional criteria for large companies to meet in order to be eligible for RSA. We can only support projects if the Company is adding activity at a new location; or if they are diversifying into new products or process innovations. The EU defines diversification as an activity that can be classed under a different NACE code (broadly comparable with the first four digits of a SIC Code used on a company’s annual return). See link for further details:

https://ec.europa.eu/eurostat/statistics-explained/index.php/NACE_background#undefined

Diversification Projects: If the project is at premises where the Company is already located, can you demonstrate that the project is a diversification of existing activity? If Yes, please give details on a separate sheet of paper.

Yes No

New Economic Activity within the Regional Aid Map: If the project is to be located at new premises, have you consulted with the RSA Team to confirm that the new location for the project is eligible for assistance?

Yes No

In implementing this project, will you be relocating any activity or jobs from elsewhere within the European Economic Area to the project location? If Yes, please give details on a separate sheet of paper.

Yes No

Scenario 1 Mobile Projects: Grant is required to influence the Location of the project?

Yes No

Scenario 1 (cont’d). Have you provided a Net Present Value Calculation for the project period to demonstrate that grant is needed to close differentials in costs when comparing the project location to a non-UK option, with cost differentials including but not limited to wages, premises, set-up, transport, training, administrative and tax costs?

Yes No

Scenario 2 Investment Decision Projects: Grant is required to give an incentive to adopt a positive investment decision because the project is not sufficiently profitable without RSA support

Yes No

Scenario 2 (cont’d). Have you provided an Internal Rate of Return (IRR) calculation and shown how this compares to the company hurdle rate or other similar projects?

Yes No

Section 11 – Checklist

Have you attached copies of:

Last year’s final (audited) full (i.e. not abbreviated) accounts? Yes No

Latest management accounts Yes No

CVs for key project and management personnel? Yes No

Assumptions supporting the financial projections? Yes No

Business plan? Yes No N/A

Group structure? Yes No N/A

Most recent final (audited) Group accounts? Yes No N/A

If a large enterprise NPV or IRR calculations (see Section 10) Yes No N/A

If you fail to supply any of these items, appraisal of your application is likely to be delayed.

Section 12 – Signatory – Please read this carefully before signing

By signing this application, you acknowledge that the information provided in this application may comprise company information and personal data (as defined in the General Data Protection Regulation (EU) 2016/679 and the Data Protection Act 2018 (“Data Protection Law”)). Any personal data provided in the application will be processed by SE in accordance with Data Protection Laws and held in accordance with Scottish Enterprise’s privacy notice, which can be found at https://www.scottish-enterprise.com/help/privacy-notice/your-rights. Individuals can find information on their rights in respect of the personal data we hold by also visiting our privacy notice.

The information provided in this application may be shared and used by Scottish Enterprise, The Scottish Government, Highlands and Islands Enterprise and other associated bodies such as local delivery organisations, consultants and agents collectively referred to as ‘the Agencies’, to assess its suitability for support. If the application is successful, the Agencies will use the information provided in this application form for administration and management purposes, including carrying out appropriate checks and audits. Some information may also be passed to auditors, the European Commission or its agents for administrative purposes.

By signing this application, you are confirming that you are the data controller of personal data contained in this application and that this personal data can be processed by Scottish Enterprise for the purposes outlined above. If successful you will also be the data controller for the personal data provided as evidence.

I am content for information supplied here to be shared in confidence with other public-sector bodies, who may be involved in considering the case.

I understand that if I give information that is incorrect or incomplete, grant may be withheld or reclaimed and action taken against me. I declare that the information I have given on this form is correct and complete. I also declare that, except as otherwise stated on this form, I have not started the project which forms the basis of this application and no expenditure has been committed or defrayed on it.

I understand that any offer may be publicised by means of press release giving brief details of the project and the grant amount.

Applications must be signed by an Executive Director or Company Secretary (in the case of a company) or by the proprietor or a partner.

Signed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Position in Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Where to Send Your Application

Send the completed application form, appendices and the other information detailed on the checklist to:

rsa@scotent.co.uk

or

Regional Selective AssistanceScottish Enterprise Enquiry Service Caspian House2 Mariner Court 8 South AvenueClydebank Business ParkGLASGOW G81 2NR

If you have any questions, call the RSA Enquiry Line on 0845 607 8787 or email rsa@scotent.co.uk