Notice

EEF 9: questions received with responses (updated 3 May 2022)

Updated 8 February 2023

Questions and answers, 3 May 2022

Issues with the Project Cost Breakdown Form.

We apologise for the error in the match funding cell on the summary sheet. We have updated the template.

Is there any pre-registration for an application?

No, there is no pre-registration required to submit an application.

Are there any noteworthy differences between the Round 8A and Round 9 application forms that we would need to be aware of should we wish to resubmit an application?

The applications for EEF 8 and EEF 9 are broadly very similar as we are looking to achieve the same outcomes. However, we have slightly revised the wording of each question to make sure applicants clearly understand what we are looking for. The questions and assessment criteria are given in Part 2 Section 9 of the EEF 9 Guidance Document – this gives a very good indication of the questions being asked and the type of responses we are looking for.

The company registered in 2018 so while they are officially a start-up during application and, hopefully, grant award, they wouldn’t be for the duration of the project. Is that long term status part of the eligibility checking process?

No, the applicant only needs to fit the categories they are applying under at application stage, not for the duration of the project.

I would like to apply for The Energy Entrepreneurs Fund as a start-up. I was wondering if you could kindly let me know what the requirements are. I have a business which is less than a year old and the turnover is zero now and the company has started setting up the accounts for future work. Also kindly let me know how it works if I do want to collaborate with a company that has been running with Innovative UK funds, doing research and experimental works on the next generation of batteries (battery is a part of my project to be employed). Can I still apply for the start-up fund with having this collaboration?

To qualify under Aid for Start Ups, your business needs to meet the other eligibility criteria in addition to being less than five years old – including being a small or micro business, not being listed on stock exchanges or being formed through mergers or takeovers, not paid out dividends (see Section 6.2 of the guidance document).

If your start up is less than one year old with no annual turnover, you can answer the application questions with £0 or N/A.

If your application is successful, you will be asked to provide the validation from an independent party as part of the due diligence checks. The turnover should be checked by a certified auditor, which would be a registered Auditor or a Chartered Accountant in Practice.

However, the Aid for Start Up category is only sole applicants. If you want to apply as part of a collaborative application, you can still apply for EEF, but you would need to apply under the Aid for Research and Development category, as consortia are not eligible under Aid for Start Ups.

What is the minimum and maximum project duration allowed under this call?

Projects must be completed before 31 March 2025. There is no minimum project duration.

What is the earliest expected project start date?

Projects should plan to start in October 2022 at the earliest.

What ratio of project cost distribution between the Business lead and the University is permissible? Is it 70% for the business lead and 30% max for the University?

A university collaboration partner can spend between 10% and 70% of the total costs for the partners to qualify for the increased grant rates that a collaboration brings.

Can the University claim 80% of FEC as 100% grant as we do in case of Innovate UK grant applications?

University partners can only claim their costs at 80% FEC, as detailed on Page 24 of the EEF 9 Guidance Document. There may be similarities between BEIS and Innovate UK funding competitions but every competition is different and has its own set of eligibility criteria, you should therefore not assume and similarities between funding bodies.

Does the University need to complete and upload a J-es Form as part of this application?

No universities do not need to apply through the J-es system or upload a J-es form.

Are there any other forms that the University need to complete and upload as part of this application?

University applicants should complete the same documents as all other applicants. On the Project Cost Breakdown Form, there are separate tabs for higher education institutions to record their labour and overhead costs.

Do you have a template for the “Heads of Terms” document that is required to be uploaded as part of the application?

No, we do not provide a template for the Heads of Terms.

The Technology Scope section of your presentation does not include an icon referring to wave energy as it does for offshore wind and solar. Would you encourage marine wave energy conversion proposals? Would your examiners treat wave energy conversion proposals equally or will give a priority to offshore wind and solar?

We do not prioritize any technology. Marine wave energy conversion proposals would be treated equally as any other proposal. Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. Provided the project involved these elements and was at TRL 3 – 8, it would be eligible.

I have a query about “Aid for Start-Ups”. I run a small business. I have been working on a product-concept for the last 12 months. In terms of technology, markets etc it sits well outside, and is entirely separate from, the existing business’ domain.

For several reasons therefore, it would be much simpler overall to apply to EEF9 via a separate start-up (i.e., dedicated to development, prototyping, trialling and commercialisation of the product). This would be established in advance of the application (i.e., in next few weeks). However, I would be grateful if you could advise on the following eligibility condition:

“must have spent at least 10% of turnover on R&D in at least 1 of past 3 years (if no turnover yet, this must be validated independently)”. Does the reference to “this” mean independent validation of:

a. having spent less than 10% of turnover on R&D, or
b. the absence of turnover

Does this condition preclude a very new start-up? i.e., if there is literally no turnover history for a business that is a few weeks’ old and independent validation is effectively impossible, would this make the start-up ineligible? I assume not.

The absence of turnover would need to be validated by an independent party if your application were successful. If your start up is less than one year old with no annual turnover, you can answer the application questions with £0 or N/A.

If your application is successful, you will be asked to provide the validation from an independent party as part of the due diligence checks. The turnover (or absence of turnover) should be checked by a certified auditor, which would be a registered Auditor or a Chartered Accountant in Practice.

This does not preclude very new Start Ups. One could create a new company for the sole purpose of applying for the grant and qualifying under the Aid for Start Ups subsidy category. The absence of turnover would need to be validated by an independent party if your application were successful.

We have developed a process that does not require expensive sorting or chemical processing to recycle solar panels. Would this be a project that could receive funding from the Energy Entrepreneurs Fund? Currently most of the solar panels in the UK are exported to Belgium.

To be eligible for the fund, over 50% of the project’s activities must be conducted in the UK. The fraction of the project activities that take place in the UK is measured as the proportion of the total eligible project costs that are spent in the UK, as opposed to spent outside the UK.

Please note, the EEF is for the development and demonstration of technology, not for the sale of products or services arising from the technology. Provided that your process is at technology readiness level (TRL) 3-8, your project improves the TRL of this process, and you can demonstrate the impact on carbon savings or UK security of energy supply, then it could be eligible.

We are currently in the process of developing innovative technologies with respect to energy production & efficiency conversion that are already licensed via partnership by NASA in the USA. As I read through the fund guidance, I read the note about public companies being ineligible if Match Funding monies were received via public means. Given that we are a small US start-up on the OTC market with 3 employees, we feel as though we are being excluded without an option to make our case based on our Match Funding coming from the inventor himself and not public dilution or capital raises. Are there different initiatives that would allow a smart public start-up to compete as long as our match funding is private monies?

The lead applicants for EEF must be UK-registered entities. As a US start-up, you would unfortunately be ineligible for the EEF as a lead applicant. You may be eligible to participate in a collaboration led by a UK company, provided over 50% of the project activities take place in the UK.

Match funding may come from a company’s own resources or external private sector investors but may not include funding attributable to any public authority. Match funding from the inventor himself would be allowed, provided this comes from private sources and not public sources.

Is a software innovative solution eligible?

Yes, innovative software solutions may be eligible, provided the project meets all the eligibility criteria in the Guidance Document.

Is there a template to calculate personnel costs? In my case, we want to bid mainly for labour costs. If there is no template, is there an annual maximum that can be claimed (say GBP 100,000 per specialist professional?) or some ranges specified for professional category (e.g., IT specialist, engineer, etc).

We do not place any limits on projects costs in any particular category. You will be expected to fill out the Project Cost Breakdown Form in your application, which should clearly list all the eligible costs and specify the day rate(s) used for labour costs. You will also be asked to justify the costs as part of the application.

We are a consortium Lead (SME) applying under the Aid for Start Ups for over £500,000. We currently have a Catapult partner that requires 100% funding but is a consortium member not a subcontractor. Will the fund allow the partner to be paid 100% via ourselves but then would we only be able to recover 80% of this value from BEIS?

BEIS will consider applying different grant rates based on the project partners having different eligible subsidy categories.

For example, you as the project lead could incur 60% of the total project costs and could recover them at 80% while the catapult could incur 40% of the project costs eligible for funding at 100%. In this situation, BEIS would consider a total grant intensity of 88% for the project (0.6 * 0.8 + 0.4 * 1.0 = 0.88).

Given that a substation and additional flexibility assets included such as storage will continue to be used for many years after the project but continuing to deliver the same service, can the full cost of the equipment be considered eligible? If only 2 or 3 years depreciation costs are eligible on equipment that should have a life expectancy of 15-20 years this would make the bid untenable.

Only the portion of costs which can be attributable to the project – for extent used on the project and for the period used on the project – can be considered eligible costs. In this scenario, the full equipment costs are unlikely to be considered eligible.

Funding levels for aid to R&D. Our consortium will include [partner] who is expected to charge less than 20% of the eligible costs. They are a large organisation and as such can only claim 40% aid towards their costs. Does this mean that in our case, because [partner] is a large organisation the whole consortium can only claim 40% aid or is the aid that each individual member of the consortium can claim determined by their size: i.e., partner can only claim 40% whereas we, as a micro enterprise, can claim 60% of their eligible costs?

BEIS will consider applying different grant rates based on the project partners having different eligible subsidy categories. For example, in the situation where the large organization incurs 20% of the project costs and is eligible for a 40% rate, the remaining 80% of the costs could be incurred by an SME otherwise eligible for a 60% grant rate. In this situation, BEIS would consider an overall grant intensity of 56% (0.2 * 0.4 + 0.8 * 0.6 = 0.56).

With regards to eligibility for Cornwall based projects:

“At least 75% of project activities must take place in the geographical boundary of the county of Cornwall.”

a. Is this manufacturing activities as well as operational activities?
b. Does a commercial lead project partner mean a registered business with a Cornwall address, or can the business be registered elsewhere in the UK?

This includes all types of project activities so long as they are eligible project costs. The fraction of the project activities that take place in Cornwall is measured as the proportion of the total eligible project costs that are spent in Cornwall, as opposed to spent outside of Cornwall. Therefore, at least 75% of total eligible project costs must be spent in Cornwall.

The commercial lead partner can be registered elsewhere in the UK. However, the commercial lead partner must themselves undertake at least 50% of the project activities in Cornwall. Again, 50% of project activities is measured as the proportion of total eligible project costs which are incurred by the commercial lead partner in Cornwall.

We are in discussions with several verticals such as the Incinerator industry and the Steel industry. Would it be better to include as many of these industries as we can to get as broad a report and hence show that we apply to multiple industries, not just one or two?

If by “include” you mean mentioning in the application text – you can include multiple industries which could utilize benefit from the technology. Be sure you answer the specific application questions asked. If you mean as project partners – you should include as project partners only the organizations that would be directly involved in the project.

Our start-up company has a patent for a technology that is currently at the level of TRL-4. Our technology is not yet commercialized. We are going to apply for participation in the competition for promotion to TRL-5. Doesn’t this contradict the terms of the competition?

The competition is open to projects with technologies at TRL 3-8 and we would expect an innovation to progress through the TRLs as part of the EEF project. Provided that your project meets the other eligibility criteria detailed in the Guidance Document, then you are eligible to apply.

We are planning a consortium bid and require some clarification of the funding rules for a feasibility stage project. If the consortium includes two for-profit SMEs and one small non-profit research association, can the two SMEs claim a grant rate of 70% and the RTO a grant rate of 100%? The guidance refers to “Maximum aid towards eligible project costs” but it is not quite clear if this refers to each partner individually or to the whole project across all partners (in which case the SMEs would need to claim less than 70% to bring the overall funding rate down to 70%).

BEIS will consider applying different grant rates based on the project partners’ eligible subsidy categories.

For example, you as the project lead could incur 50% of the total project costs and could recover them at 70% and the other SME partner could incur 20% of project costs recoverable at 70%, while the RTO could incur 30% of the project costs eligible for funding at 100%. In this situation, BEIS would consider a total grant intensity of 79% for the project (0.5 * 0.7 + 0.2 * 0.7 + 0.3 * 1.0 = 0.79).

We are a micro/small business wanting to apply for EEF 9 as a consortium together with a large business for an industrial research project. From our understanding of the example that you provide on the EEF 9 Application Guidance by having a large business in the consortium the maximum amount of funding support that we could apply would be of 65%. However, considering that in our case the large business is to be allocated only to a small proportion of total budget (around 10% of a near 1 million total project cost), should this be the case for our project?

BEIS will consider applying different grant rates based on the project partners’ eligible subsidy categories.

For example, in the situation where the large organization incurs 10% of the project costs and is eligible for a 65% rate, the remaining 90% of the costs could be incurred by an SME otherwise eligible for a 80% grant rate. In this situation, BEIS would consider an overall grant intensity of 78.5% (0.1 * 0.65 + 0.9 * 0.8 = 0.785).

I would like to know if we would be eligible for the Entrepreneur Fund Phase 9 to carry out UK site installation trails, with two of our technologies for reducing greenhouse gas emissions.

This would depend on the nature of your project at these installation sites. The EEF 9 is an innovation competition, so we expect you apply at a technology readiness level (TRL) between 3 – 8 and then make technical progress so that you increase the TRL by the end of the project (even if that is just by one level). Projects that look to install or implement already commercially available technologies (TRL 9) are not eligible for the fund. Details of the TRLs can be found in the Appendix of the Guidance Document.

We are the consortium lead (SME) applying under the Aid for Start Ups for over £500,000. We have a Catapult partner which we believe BEIS will fund using the fund rate of 100%. When I am trying to complete the summary cost breakdown form, I am unsure how to include this different rate as we would recover 80% of our costs whilst they would recover 100%. I have reviewed the guidance document, but I have been unable to find a solution. Can you help?

As a consortium, you should apply under Aid for Research and Development. The Aid for Start-ups category is only open to sole applicants.

Regarding the match funding rate on the Project Cost Breakdown Form, BEIS will consider applying different grant rates based on the project partners having different eligible subsidy categories. For example, you as the project lead could incur 60% of the total project costs and could recover them at 80% while the catapult could incur 40% of the project costs eligible for funding at 100%.

In this situation, BEIS would consider a total grant intensity of 88% for the project (0.6 * 0.8 + 0.4 * 1.0 = 0.88). You should check the grant intensity that you are eligible for as an SME under Aid for Research and Development in Section 6 of the Guidance Document, as this will depend on your project type (feasibility, experimental, or industrial development).

You say that integration processes that reduce costs would be eligible. Is this only integration of technologies, or could it be integration (using new processes and across technologies listed in the table) across the supply chain to reduce costs?

Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. Provided the project involved these elements and was at TRL 3 – 8, it would be eligible. The EEF 9 is an innovation competition, so we expect you apply at a technology readiness level (TRL) between 3 – 8 and then make technical progress so that you increase the TRL by the end of the project (even if that is just by one level).

Please can you tell me if the project lead is the company that is to be collaborated with and to which the equipment will be provided within the project scope.

The project lead is the lead applicant in the project and is responsible for making sure any consortium members are paid grant costs. You may purchase equipment that is directly relevant to the progress of the project, however we do not stipulate who within a consortium makes the purchase of this equipment so long as evidence of purchase is provided, and the use of the equipment is detailed in the scope of the project.

Can the project scope include the provision of equipment to the project collaborator who has multiple sites of use within the scope of the project. For example if the project collaborator can install the energy saving equipment in multiple sites that they own as part of the project in order to increase the effect of the project roll out.

The details of eligible costs for the project can be found in Section 7.4 of the EEF 9 Guidance Document. The purchase of equipment, so long as it is being directly used for the project, would be included within eligible costs. Depreciation should be taken in account for any capital items purchased under the grant.

My company has developed the technology over a number of years and I have totally self-funded everything over the years and paid for all Patents, developments and prototype testing and so it is not a start-up but hasn’t traded at all in any way but has been registered at companies house for 10 years. What status is it please for the category of business type. I have completed a commercial test in a real environment with a large international chain already, so the equipment TRL is high around 8 with some small changes and development to undertake as a result. The business has 0 - 8 people involved but hasn’t traded yet.

If your company has been in existence for more than five years you must apply under Aid for Research and Development Projects, you would not be eligible for Aid for Start Ups. The category that your company fits into is determined by number of employees and annual turnover, from the information you give your company would be classed as a micro company. Full details of these categories are given on page 18 of the EEF 9 Guidance Document.

I am writing to confirm a company’s size categorisation for the purpose of EEF Phase 9. They have 2x criteria that indicate Small (Staff of 20 people, revenue of £0), but their balance sheet is in the Medium category (Balance sheet total ~= £19m) as they have raised VC money to develop and launch their own satellite constellation (a capital intensive segment). Could you please confirm whether they would be a Small or Medium business under your criteria?

A small company would have fewer than 50 employees and a balance sheet total of less than £9m or have fewer than 50 employees and an annual turnover of less than £9m. A balance sheet of over £9m due to investment does not automatically make a company with fewer than 50 employees a medium company, provided the annual turnover is below £9m. However, if the turnover is above £9m, then the company would be classed as a medium sized company.

I am trying to understand Question 4: Cost & Performance pathway. The first part where it is asked about the area of benefit, I wondered if this is related to the technology/project that we have proposed in the application or general company’s business model?

This is related to the technology and project for which you are applying for the grant. It is not the company’s general business model.

Regarding the Cost Performance Pathway form itself, should I respond this based on the estimated sales of this project or based on the estimated areas of benefit? If it is based on the areas of benefits and I choose two areas, will I need to create more lines on the excel sheet? Similar question, if I have multiple products with different lines of sales, will I need to create more lines? Or should I just get an average of all sales?

You will need to enter information both about the sales (anticipated sales volume) and the benefits (estimated performance) of your innovation.

You should not need to create more lines on the form. We understand that many innovations may improve on a few dimensions of performance over the project – for the form, you should choose the most relevant performance metric, ideally using an industry standard measure of performance.

The final question is regarding the Cost Performance Pathway form difference between the start and the end of the project. Would this be measured based on this project cost and our journey to commercialise the technology related to this project? Or is it based on the impact of this project on our overall company’s sales?

This is related to the technology and project for which you are applying for the grant. It is not related to the overall company sales.

I had some questions about the Cost & Performance Pathway attachment. While we’re developing a novel technology for the wind energy industry, our business model is based around IP licensing, royalties on our customers’ sales, and consulting fees. As such, we’ve found it a bit difficult to adapt our figures to the format of the provided sheet. Could you please advise what would be best to do regarding this part of the application?

The Cost and Performance Pathway form is related to the technology and project for which you are applying for the grant. This is not related to the company’s general business model.

**You should outline how your innovation currently performs and the future pathway for your innovation. Assessors will consider how the project could improve the performance of the innovation and/or reduce the cost of the innovation, in addition to the other assessment criteria listed in the Guidance Document.

For question 3 on the application, you are able to insert a 10MB file. Is there any restrictions on what this can be? For us to be able to describe the technical innovations, we would need to explain the underlying physics. This requires diagrams and equations. Would this be accepted?

The optional upload in question 3 should be a photograph, schematic, diagram, or other visual representation which enhances the understanding of the text, if appropriate, and should be referenced in the text.

The assessors will have technical backgrounds, but you can include in the text an explanation of concepts critical to the understanding the technical innovation.

I know it’s been answered in your Q&A section on the website, but I would love clarification that discussing patents that haven’t been applied for yet, won’t affect the ability to patent them in the future?

Writing in the application about technology for which you have not yet applied for a patent will not affect the ability to patent them in the future. All applications are confidential apart from the public summary that you provide, which clearly asks not to give confidential information. All assessors are required to sign conflict of interest and confidentiality agreements.

For the match funding – is there any restriction on convertible loans or equity investments? We are currently looking to partner with an early stage VC.

Convertible loans and equity investments may be eligible sources of match funding, provided that they do not include funding attributed to any public authority.

Questions and answers, 8 April 2022

Technology Scope and TRL

Our company is currently on the TRL6 and falls a little behind with the Manufacturing readiness level- MRL. We would like to explore possibilities to bring our MRL higher within this project by building the pilot plant. My question, therefore is, are falls into the scope of this call?

To be eligible for the fund your innovation must be at TRL 3 or above, as you have stated. We do not place a minimum requirement on MRL for eligibility to the fund as it is not something we currently measure or assess.

You are welcome to progress through MRLs in your project, however we would also expect an innovation to progress through the TRLs as part of the EEF project. Most likely the progression through MRL and TRL go hand in hand, but it is important to note that our assessors will be looking at TRL progression, rather than MRL progression, detailed in the application.

Would the purchase & installation cost of solar panels be eligible under this grant? What % of the funding would be received? E.g. would 50% be paid by the company and the remaining by grant?

The EEF 9 competition is an innovation competition, therefore you would not be able to use the funds to purchase and install commercially available solar panels because there is no innovation to be shown in the installation - the solar panels are a proven technology. In the application you will be asked to detail your innovation and the TRL progression you expect to make during the project, commercially available technologies would not be eligible for funding because they are at TRL 9. Details of the TRLs can be found in Appendix 1 of the Guidance Document.

The amount of grant funding that you can receive depends on the Subsidy Category that you apply under, this is detailed in Section 4 of the Guidance Document.

We have a UK business where say at least 80% of our company costs are in the UK. However, our main market is Africa, India etc… the global South. We trust technologies for export markets are fine for this application?

EEF is for the development and demonstration of technology and the technology has to demonstrate an impact of carbon savings or security of supply in its potential market – this is not UK specific.

Will industrial Hemp be within scope of the funding call?

Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. Provided the project involved these elements and was at TRL 3 – 8, it would be eligible.

What considerations will be given to projects focusing on enabling offshore wind farms?

The fund is technology agnostic and we do not favour any particular technology. Successful applicants will be those with the highest scoring applications, regardless of technology area.

What is the preferable scale of project size (e.g. 10MW)?

There is no preferable project size. Your application should support the development and demonstration of your technology. Therefore, you would need to justify in your application why a specific scale up has been suggested, and how this is relevant to the development and demonstration of your technology.

Is there a specific market EEF is looking to address?

EEF is for the development and demonstration of technology not for the sale of products arising from the technology. The development and demonstration of the technology has to demonstrate an impact of carbon savings or security of supply in its potential market – this is not UK specific.

Please confirm if carbon removal technologies fall under the definition of “reducing greenhouse gas emissions”? This involves removal of atmospheric CO2 rather than capturing CO2 from emissions and deals specifically with reducing the levels of CO2 that have been historically emitted.

Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. Carbon removal technologies could contribute to meeting 2050 net zero targets. Provided the project involved these elements and was at TRL 3 – 8, it would be eligible.

Will energy efficient technologies for drying compressed air qualify for funding under the technology scope of EEF 9?

Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. Provided the project involved these elements and was at TRL 3 – 8, it would be eligible.

Do Analytic and Visualisation tools for clean tech count at technology eligible for the EEF 9 funding?

Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. Provided the project involved these elements and was at TRL 3 – 8, it would be eligible.

What level of TRL is the program gear towards, does it have to be above TRL3?

Innovations must be at TRL 3 or above (up and including TRL 8) to be eligible for the fund.

Most of our projects are TRL 3 and still far from a commercializing stage. One of our ventures is creating a prototype for a part of an equipment we would need. It would not be for sale as we need it to further advance our studies into an energy route. Would this be suitable?

Projects at TRL 3 are eligible for EEF funding. Projects must demonstrate their impact on the 2050 carbon targets and security of energy supply. In the application, you will be asked to articulate the impact of your innovation on climate change mitigation and/or UK security of energy supply. If you can explain how the proposed equipment prototype contributes to these goals, then it may be suitable.

We are on the path of clean energy, but still away from a net zero and carbon sequestering. Will this affect our opportunities?

The fund is technology agnostic and there is no requirement for carbon sequestering to be a part of your innovation.

Subsidy Category and Match Funding

What is the level of funding and size of company are allowed to apply?

Companies of any size are allowed to apply, although we particularly encourage applications from SMEs. Companies can apply for up to £1m of funding, and the maximum overall project size is £2.5m. The specific funding subsidy levels will depend on the company size, project type, and whether you apply as a sole applicant or part of a consortium.

Details of funding levels and rules partnering with other companies and universities.

Please see Section 6 of the EEF 9 Guidance Document for details on funding categories and partnering with companies and universities.

On pages 17/18 of your guidance notes, you specify that a company must have existed for less than 5 years. Does this allow application from a dormant (never traded) company that has ‘existed’ for longer, or not?

If your company has existed for longer than 5 years in any state (including dormant), you can still apply for EEF, but this application must be under the Aid for Research and Development category, not under the Aid for Start-ups category. One could create a new company for the sole purpose of applying for the grant and qualifying for the Aid for Start-ups category.

Does the SME need to have been registered with Companies House for LESS than 5 years to be eligible for grant funding under EEF9, or can the SME have been in existence for more than five years?

If you apply under Aid for Start Ups your company has to be in existence for less than five years. You must apply under Aid for Research and Development Projects if you company has been in existence for more than five years.

In your guidance notes (and in the application form) reference is made to the last three years. You ask “if you’re a start-up with no turnover yet, you must have this validated by an independent party” how is this to be accomplished, please - how do we answer similar t/o and expenditure questions on the application form?

If your start up is less than one year old with no annual turnover, you can answer the application questions with £0 or N/A. If your application is successful, you will be asked to provide the validation from an independent party as part of the due diligence checks. The turnover should be checked by a certified auditor, which would be a registered Auditor or a Chartered Accountant in Practice.

Start-ups collaborating with Universities, is this classified as a consortium (max 80% intervention rate for the start-up)? Could the University be regarded as a sub-contractor (max 90% intervention rate for the start-up)?

A collaboration between a start-up and a university is a consortium. You would need to state and justify in the application the amount of sub-contract funding (if any) and expected to explain the necessity for this spend as opposed to the addition of a collaboration partner.

What is the classification if it is less than 250 employees and less than 2m turnover? Would that make us a micro or a medium size company?

If your company has between 50 and 250 employees and turnover of less than £2m, that is a medium sized company. A micro sized company would have fewer than 10 employees and a turnover of less than £2m.

Double checking that the project type does NOT apply for “Aid for start-ups”?

The Aid for start-ups category has the same levels of funding for all project types.

If an organisation has received an Innovation Loan (not a grant) from the Innovation Funding Service, does that equate to ‘public money’ that cannot be used as match funding for the project?

Match funding may come from a company’s own resources or external private sector investors but may not include funding attributable to any public authority.

Does the company need to be formed prior to applying or can it be formed once awarded like other funding calls?

To be the lead applicant in a project you must be a UK registered company when you apply to the competition.

Is there a maximum percentage limit the funding for academic partners (e.g., in Smart it is 30%)?

As with other government funding bodies funding higher education institutions, we will not pay more than 80% of the Full Economic Costs (FEC) calculated using the Transparent Approach to Costing (TRAC) methodology. Any applications requesting items that would ordinarily be found in a department, for example non-specialist computers, should include justification.

We believe that we qualify under Aid for Start Ups. This requires us to show that we have “spent more than 10% of operating expenses on R&D in one of the last 3 years.” So that we can prepare for this, can you confirm how you define “operating expenses” and also what would count as “R&D”?

Operating expenses are the total outgoings of an organisation excluding items such as depreciation of capital purchases. EEF uses the same definition of R&D as the Government uses for tax purposes. In the example given, only the 30% contribution will count towards R&D expenditure of the company.

Application and eligibility

Is there a maximum grant per company?

You may apply for a grant up to £1m.

Is it possible to use an application previously submitted to a Innovate UK competition to form the basis of an application to EEF Round 9?

Yes, you may use the basis of a previous application for an application to EEF 9. Please do remember that EEF 9 will not have the same assessment criteria as Innovate UK competitions and should therefore be adapted accordingly.

Can project outputs be delivered in a non-UK country?

Yes, the outputs of the project may be delivered in a non-UK country, so long as over 50% of the project’s activities must be conducted in the UK. The fraction of the project activities that take place in the UK is measured as the proportion of the total eligible project costs that are spent in the UK, as opposed to spent outside the UK.

Does the company need to be formed prior to applying or can it be formed once awarded like other funding calls?

To be the lead applicant in a project you must be a UK registered company when you apply to the competition.

Can an application have a single applicant? or the consortium is preferred?

We do not have any preference for sole applications vs consortia. However, you will be expected to state and justify in your project application the amount of sub-contract funding (if any) within the expected spend of the project. You will be expected to explain the necessity for this spend as opposed to the addition of collaboration partners within the project proposal.

How many partners are required?

You can make a sole or collaborative application depending on the requirements of your project. If you make a collaborative application, there is no minimum or maximum requirement on the amount of project partners.

Please can you provide further information around collaborative applications? We collaborate with SME businesses and would like to understand the eligibility and process of submitting joint applications some more.

If you are applying in a consortium you must apply under Aid for Research and Development Projects. There are no limits on number of partners in a consortium, or the combination of companies and institutions that make up the consortium. We have had successful applications from a very wide range of consortium combinations. You will be expected to justify the role and expertise of each partner within your consortium and why they are relevant to your project. There is only ever one lead partner on an application and the lead partner is responsible for paying the consortium partners when a milestone claim is made - BEIS only ever have pay the lead partner on a project. The lead partner must meet the eligibility requirements detailed in the EEF 9 Guidance Document e.g., they must be a UK registered company.

Is this grant for Cornwall based businesses only?

The competition is open to applicants in England, Scotland, Wales and Northern Ireland, not just Cornwall based applicants. Applicants must all meet the Eligibility Criteria listed in Section 2 of the Guidance Document.

Do projects have to take place in Cornwall?

To be eligible for the fund over 50% of the project’s activities must be conducted in the UK. To be eligible for the preferential funding for Cornwall, at least 75% of the project’s activities must take place in Cornwall. The fraction of the project activities that take place in Cornwall is measured as the proportion of the total eligible project costs that are spent in Cornwall, as opposed to spent outside of Cornwall.

You have specified the allocation of fund for Cornwall based projects to be 1M. Is there any number of projects that you are ideally planning to fund?

The funding for Cornwall based projects will be allocated starting with the highest scoring project that meets the minimum funding criteria. We will fund as many projects as we have funding for, allocating the funding in order of their assessed scores, until either the funding has been allocated or no more projects meet the minimum funding criteria.

Will UK entrepreneurs based overseas be eligible for this funding for example if they apply through UK based SME entity?

To be eligible for the fund over 50% of the project’s activities must be conducted in the UK. The fraction of the project activities that take place in the UK is measured as the proportion of the total eligible project costs that are spent in the UK, as opposed to spent outside the UK.

Should the Gantt template should show projects starting on 1 Oct 22?

The Project plans and Gantt charts templates can start on or after 1 October 2022.

Are resubmissions allowed?

Yes, if you have been previously unsuccessful in any of the EEF 1 - 8 competitions but may resubmit your application. You should consider any feedback given to you in those competition rounds. You may also apply for EEF 9 is you have been successful in previous EEF rounds; this work must extend the scope of the previous work to new applications or processes. There will be no advantage for existing EEF projects applying for further funding in the application process, as all applications will be treated on an equal basis in accordance with the competition criteria. You will be asked to declare any previous EEF applications during the application process. Failure to declare previous applications to the Fund will result in the failure of the Eligibility Criteria requirements to proceed to assessment.

I have funded all development and Patent registration personally for many years and struggled to get assistance even by way of R & D tax credits for all the money that I have spent so I would like to know please how financial help to continue with the further enhancement, development and commercialisation of the product is realised please.

If you meet the eligibility criteria detailed in Section 4.1 of the EEF 9 Guidance Document you are welcome to make an application for a EEF 9 grant for the development and demonstration of your technology. Details of the application questions and the relevant assessment criteria is detailed in Section 9 of the EEF Guidance Document - this guidance should give you the best possible chance of making a successful application.

Can an EEF grant submission be made for projects that will have already started before the grant decision is made, for instance, we are engaging in R&D for our company and can accelerate the R&D work with a grant under EEF9, but we do not want to wait for the EEF9 decision to proceed with early activities?

BEIS is unable to fund retrospective work on projects. The value of retrospective work may, however, be considered in the assessment process. Your application can only include work that will carried out once your Grant Offer Letter is signed.

Can LLPs be a lead or partner in an application?

Yes, they can be a lead or a partner in an application.

Can projects include a Work Package devoted to process development?

Work packages proposed in your application should support the development and demonstration of your technology. Therefore, you would need to justify in your application why a Work Package devoted to process Development is relevant to the development and demonstration of your technology.

Can you also please confirm if there is a section/question to input background information on the company to set the project in context e.g., who we are, what we do, the story so far etc?

There is no specific section/question for background information on the company. The application will be assessed on the 10 questions detailed in Section 9 of the EEF 9 Guidance Document.

Can you please confirm if the attachments for the Gantt chart and the Risk Register must be completed using the templates provided or if we can use our own version? I appreciate the Cost and Performance pathway attachment and Project cost forms must be completed in the standard format.

Yes, the attachments for the Gannt Chart and Risk Register uploads must be completed using the BEIS templates that are provided.

Based on the objectives of our proposed project for EEF 9 competition, I was wondering if there are any limits on CAPEX level and if majority of our project costs could be allocated to CAPEX (ie. above 70%).

We do not place any limits on project costs in any particular category e.g. materials, labour. You will be expected to fill out the Project Cost Breakdown Form in your application which should clearly list all eligible costs associated with the project. Details of all eligible and non-eligible costs are detailed in the Section 7.4 of the EEF 9 Guidance Document.

Assessors will consider the following points when assessing the costs associated with the project:

• Is the budget realistic for the scale and complexity of the project?
• Is the budget breakdown realistic?
• Do the work packages align with the predicted spend profile shown on the project cost breakdown form?

You should take all these points into consideration when detailing the project proposal and its associated costs.

What type of investment can be considered for the 20% of the project costs (e.g., time from partners or consultants etc.)? Can we have a consultant from outside UK?

The details of eligible costs for the project can be found in Section 7.4 of the EEF 9 Guidance Document. The costs that are not covered by the grant should be eligible costs, but they do not need to fall within a specific category. Yes, costs for a consultant outside of the UK are eligible so long as over 50% of the project’s activities are conducted in the UK.

Do the grants cover purely capital purchases or does it cover the costs of the project including Labour and materials?

The grant covers the eligible costs for the project, not just capital items. Details of eligible costs can be found in Section 7.4 of the EEF 9 Guidance Document.

How should facility costs be claimed for non-HEI RTO’s? And is it possible to claim direct costs related to facilities (such as electricity usage of the facility) within the EEF 9?

EEF will only pay facility costs for non-HEI RTOs where the facility in question can be identified as being directly required for the work; that is, we will not pay indirect costs, which are part of the overheads (which we would normally expect to be 20% of labour costs unless a good and compelling case can be made for an alternate figure). In this case, the facilities should be described fully in the costing sheet in the ‘other costs’ category. Therefore, electricity costs will only be reimbursed if they are a significant part of the work and are separately metered. Note that assessors of the proposal will be asked to determine in their professional opinion, whether this work forms value for money as one of the criteria and that excessive costs will be penalised by in the assessment.

Is EEF eligible for projects in South Africa?

To be eligible for the fund over 50% of the project’s activities must be conducted in the UK. The fraction of the project activities that take place in the UK is measured as the proportion of the total eligible project costs that are spent in the UK, as opposed to spent outside the UK. Additionally, if you are applying as the lead applicant for the project you must be a UK registered company.

Can a university be a sole applicant, lead partner or joint partner in an application?

It is expected that research organisations, including universities, will apply as part of collaborative applications.

Do partner companies have to be registered in the UK and be predominantly British-owned OR can they have a subsidiary/representative in the UK.

Over 50% of the project’s activities must be conducted in the UK for projects to be eligible - the remaining costs may be spent out of the UK and therefore partner companies may be non UK registered companies or subsidiaries. The fraction of the project activities that take place in the UK is measured as the proportion of the total eligible project costs that are spent in the UK, as opposed to spent outside the UK.

Is UK subsidiary of overseas headquartered SME eligible for the funding?

The UK subsidiary must have a UK registered company number if they are the lead applicant in the application. A UK subsidiary would also be eligible for funding as a partner in a project. In both cases over 50% of the project’s activities must be conducted in the UK for projects to be eligible.

Assessment

Could you provide details on the criteria that will be used for the commercial review?

The purpose of the commercial review is to assess the commercial integrity of technology being proposed within an application.

Does the grant submission stay confidential so as not to affect IPR submissions?

Yes, all applications remain confidential. If you are successful the public summary that you provide for the project will be published, but the application and project specifics remain confidential.

Declaration date of successful applications?

All applicants will be notified if they have been successful or unsuccessful in August 2022 - we are unable to give a specific date at this point.

After award

What happens if we are awarded a both Smart grant and EEF 9 for the same project? Smart grant results are announced a month or two earlier on 24th June. can we accept both Smart and EEF grants for different but overlapping projects?

You cannot be funded twice for the same project. However, you can accept both grants IF the projects being completed are distinctly different in their objectives but happen run in parallel to each other.

Would it be possible to share the T&C’s documentation?

Please email entrepreneur@beis.gov.uk if you would like a draft copy of the Grant Offer Letter and Grant Funding Agreement.

How is the grant claimed? Retrospectively on a quarterly basis?

Claims are paid in accordance with your milestone schedule which is detailed within your Grant Offer Letter. These have to be costs incurred and evidence of work completed against the milestone deliverables will be required. We do not stipulate a set interval at which a milestone should be completed and claimed against. Instead, you will complete your milestone schedule based on project timescales – you can therefore claim on a monthly, quarterly and six monthly basis (and any combination of these) depending on when your specific project deliverables will be achieved.

Can staff costs (with the agreed day rates) only be claimed in conjunction with meeting agreed milestones, or can regular monthly staff costs be claimed monthly?

All costs are only claimed when deliverables are achieved, and milestone claims are made.

Did we hear correctly that time sheets and payslips are not required for claiming against staff costs, only a signed Director’s Declaration? And presumably if total staff costs for a claim period come to more than £10,000, a bank statement to prove the spend?

Timesheets and payslips are not required as evidence when you come to claim labour costs at a milestone claim. However, we do expect you to keep timesheets and your monitoring officer may request to see them when they complete a site visit. If total staff costs for a milestone claim are more than £10,000 you do not need a bank statement to prove spend. All labour costs should be consistent with the day rates stated in the Project Cost Breakdown Form in the application, and should remain consistent over the duration of the project. A signed Directors Declaration is required as evidence for every milestone claim below £100,000.

Single claims over £100,000 need an Independent Accountants Report - does this mean the claim for a single item, or the total amount for a single claim period? For example, if a quarterly claim comes to more than £100,000 but it is made up of multiple smaller claims aggregated together, does that trigger this point?

An Independent Accountants Report is required when any single milestone claim made to BEIS is more than £100,000 i.e., the invoice you are submitting to BEIS for the claim is £100,000 or more ex VAT. Milestone claims can be made up of a single cost or multiple costs – in both instances we are concerned with the overall milestone claim cost being made to BEIS. In the example you provide you would be required to complete an Independent Accountants report even though the claim is made up of a series of smaller costs.

Other

Where there any geographical hot/cold spots in the UK in EEF 8?

No, successful applicants are spread across the UK. Please note in EEF 8 no weighting given at assessment for any location within England, Scotland, Wales or Northern Ireland. No location is more likely to win support than another. This is the same for EEF 9 except for the £1m preferential funding allocation to projects based in Cornwall.

Number of applications received into the EEF8 call and the number of applications which passed admin/compliance etc and were taken forward to review.

236 applications were received in EEF 8. 233 applications were taken through to assessment and moderation.

How many successful bids, and the amounts awarded in EEF 8?

58 applications were awarded grants in EEF 8. The average grant awarded was £511,751.

The number of proposals which scored 50% and above, 60% and above, 70% and above, 78% and above in EEF 8?

This information is not available.

Is it still possible to watch the webinar recording?

Yes, see the recording of the EEF9 Information Session and a copy of the presentation slides.

Can we request a 1-1 meeting to discuss our project to check we are in scope before we commence with the full application - would this be possible?

We do not hold 1-1 meetings with potential applicants. Instead, please send all project specific questions to entrepreneur@beis.gov.uk.