The New Direct Assistance Scheme Funding for Private Sector Firms

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1 The New Direct Assistance Scheme Funding for Private Sector Firms

2 New Direct Assistance Scheme The new funding facility aims to build on the success of the 9th EDF funded Direct Assistance Scheme and use the lessons learnt to improve the delivery of assistance to firms. Establish, strengthen and support partnerships with BSOs to ensure wider visibility of the funding facility and increase firms ability to successfully access the scheme. Support Private sector firms that are exporting or seeking to develop export markets for goods and services will be the target group for this Scheme.

3 New Direct Assistance Scheme The New Scheme aims to further strengthen the private sector firms in competing in the global economy by providing the necessary financial assistance to: Develop high value added products Enhance productivity Increase production Open new markets Introduce new processes for industry, and Induce changes in industrial oragnisation

4 Year 1 Work Programme The proposed work programme for year 1 (March December 2011) will involve the following activities, but not be limited to: 1. Preparation of Guidelines and Application Forms 2. Promotion of facility via, Caribbean Export s website, newsletter and other publications; and other relevant BSOs such as Chamber of Commerce, Small Business Association, Industrial Development Corporation, Trade Associations etc. 3. Promotion of the new Guidelines and Application Form; inclusive of Eligibility Criteria, Eligible Activities/Projects, Eligible Costs in all 15 CARIFORUM Member States.

5 Year 1 Work Programme (Cont d) The proposed work programme for year 1 (March December 2011) will involve the following activities, but not be limited to: 4. Sensitization of financial institutions (e.g. Commercial Banks, Banking Associations, Development Banks, Agriculture Banks, Development Foundations and Credit Unions) that are likely to provide financing for private sector firms project activities. 5. Conducting technical training for BSOs and firms in three (3) key areas: EU Funding Procedures Proposal writing Preparation of Reimbursement Claims

6 Year 1 Work Programme (Cont d) The proposed work programme for year 1 (March December 2011) will involve the following activities, but not be limited to: 6. Launch of Call for Proposals (tentative date September Evaluation of Applications 8. Award of Grants to Beneficiaries

7 Eligibility Criteria Applicants eligible to apply must be: A firm (i.e. entity, individual, etc) legally registered and operating in a CARIFORUM member state; or A legally registered BSOs in a CARIFORUM member state such as trade association, chamber of commerce, industrial development corporation, other business support organisations which is undertaking an activity in partnership with at least two (2) private sector firms; Each firm must be operational for at least two (2) years supported by last two years financial statements/accounts; and Posses the ability to finance and sustain their projects fully; that is 100% financing is available.

8 Eligibility Criteria Applicants NOT ELIGIBLE to apply: Start ups; firms, entities or individuals not financially operational for two (2) years Educational institutions such as Universities, Schools, Vocational centres, etc Non Governmental Organisations

9 Eligible Activities/Projects Projects to be funded must be aimed at one or more of the following objectives: Developing new products Improving product quality and/or extending product range Developing new processes for an industry Maintaining and/or increasing market share

10 Eligible Activities/Projects (Cont d) Projects to be funded must be aimed at one or more of the following objectives: Opening new markets; increasing exports to the Caribbean Region and other International Markets Lowering production costs Identifying new sources of supply for raw materials or other inputs Enchaining productivity through training and personnel development Facilitating Trade Mark, Intellectual Property and Copyright Protection Reducing environmental impact

11 Eligible Activities/Projects (Cont d) Projects to be funded must be aimed at one or more of the following objectives: Capitalising on the benefits of the Economic Partnership Agreement (EPA), CARICOM Single Market Economy (CSME) or any other bilateral or multilateral arrangements signed by the region within the region or with ACP or EU partners Fostering intra regional cooperation to enhance productivity and capitalise on economies of scale Promoting programmes which will impact on underdeveloped areas or disadvantage sectors within the region (rural area development, gender, etc)

12 Funding Mechanisms The New Scheme will have two types of funding facilities: Facility 1: General direct assistance to private sector firms in all sectors/industry and BSOs. Budget allocation for Delivery of Assistance 3,785,968 Facility 2: Direct assistance to identified high priority niche sectors such as Agro processing, light manufacturing, fashion, creative industries, professional services, specialised tourism and alternative energy. Budget allocation for Delivery of Assistance 1,456,097

13 QUESTIONS

14 THANK YOU CONTACT: Kirk Brown Senior Grant Advisor export.com Tel: (246) Fax: (246)

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