The public body provides the match funding and is the project beneficiary. Expenditure undertaken by the SMEs is NOT match funding and does NOT count towards the eligible costs of the project. These schemes need to be considered in the context of State Aids. Schemes where a public sector facilitator applies for ERDF grant which will be matched with SME expenditure. SMEs provide private sector match funding and are the project beneficiaries.
SME expenditure is the only eligible project cost.
These schemes are not State Aids. DTI advises that public and private sector match funding cannot be present in the same project. Therefore, NO minimum level of public sector match funding applies to aid scheme projects. The Secretariat appreciates that some sponsors may need to review the structure of proposed business support applications in the light of this advice. The Commission, at DTI's behest, is re-examining its current thinking towards aid schemes.