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Herefordshire Defence and Security Research and Development Grant

Name
Herefordshire Defence and Security Research and Development Grant
Status open or closed
Open - This is an open call. Applications will be assessed on a first come first served basis until the budget is allocated. The scheme may, therefore, close at short notice to new enquiries due to budget constraints.
Aim of scheme

The Herefordshire Defence and Security Research and Development Grant is a revenue grant scheme funded by Herefordshire Council from the Hereford Enterprise Zone retained business rates.

Herefordshire has emerged as a dynamic hub for the defence and security sector, underpinned by a combination of strategic investment, academic excellence, and a growing ecosystem of innovative businesses.

The aim of this revenue grant is to grow and develop this sector and support businesses by providing grant support to develop and grow these ideas, keeping Herefordshire at the forefront of research, policy and practice in areas of defence and security.

This funding will enable businesses to:

  • Engage in the defence and security sector/markets
  • Design, simulate, test and trial new ideas and products
  • Undertake research and feasibility studies to develop concepts/commercialise ideas and open up new markets in the defence and security sector
  • Develop prototypes
  • Contract with technical specialists to assist with the development of new products and services

All grant funded projects that are supported will need to show how their project supports the defence and security sector, for example contributes to national security, public protection, operational capabilities or the resilience of critical systems. All projects must have a wider benefit than just supporting the defence and security of their own business.

Revenue grants of between £7,500 and £24,999 are available to Herefordshire businesses to undertake research and development projects.

Outputs and outcomes

All successful applications must be completed and claim submitted for payment no later than 1 March 2027 and be able to deliver one or more of the following outcomes to be eligible for support:

  • Assist in the development of new/improved products or services to the market (by the business)

And/or,

  • Assist in the development of new technologies or processes

And/or,

  • Enable the engagement in a new product market or a new geographical market

And/or

  • Creation of new job(s)

And/or

  • Securing new exporting contracts
Who can apply
  • Businesses physically trading and located in Herefordshire
  • Businesses that have been actively trading for more than six months. If trading less than 12 months, the business must already be operating in the defence and security sector at EOI submission date. The maximum grant for businesses trading less than 12 months is capped at £10,000
  • Businesses that are developing a project that directly assists the defence and security sector
  • Any size business
  • Businesses already operating in the defence and security sector will be prioritised, however, we will consider defence and security projects from other sectors, on a case by case basis
Who is not eligible to apply
  • Businesses involved in primary production (farmers). Funding for this type of business is available from Defra
  • Start-up businesses (trading actively for less than six months at EOI submission stage)
  • Start-up businesses that have been trading less than 12 months and are not already active in the defence and security sector
  • Public authorities
  • Town and parish councils
  • Voluntary groups
  • Social enterprises that are not involved in economic activities
  • Businesses where the majority of income comes from public sources due to subsidy control constraints
  • Franchise businesses/national chains
  • Non-economic activities
  • Gambling/betting establishments
  • Any business activity that is illegal or deemed unsuitable for public support by Herefordshire Council
  • Businesses whose registered address is in Herefordshire but no trading activity is in Herefordshire
  • Businesses with a religious focus, where the project or activity does not benefit the wider defence and security community and includes religious content
  • Any business that is in arrears with business rates or Council Tax payments or otherwise in legal dispute with Herefordshire Council
What the grant or funding is for

Revenue grant funding is available to pay for costs such as consultants/expert technical advice and other revenue costs. Internal staff costs may be considered, but this will be capped at 25% of the eligible project costs. These staff costs must be directly associated with the research and development funded project. The maximum eligible project costs for internal staff time is, therefore, capped at £8,333.

Eligible costs

Eligible revenue costs can include, but are not limited to:

  • Specialist support for developing and testing new ideas, products or services, including prototyping
  • Support for acquiring and protecting intellectual property/trademarks
  • Feasibility studies
  • Access to test bed facilities
  • Clinical trials costs
  • Attending trade events (by 1 March 2027) for new products or to establish a new geographical market, for example, a new region/country for the business (must be able to evidence the defence and security nature of the event) – maximum of two attendees
  • Costs associated with the commercialisation of ideas
  • New software development, for example drones, secure communications, encryption
  • Development of monitoring tools, for example environmental sensing
  • Advanced material research
What the grant or funding cannot be used for

This list is not exhaustive.

  • Capital items including equipment, purchase of land, buildings, vehicles
  • In-house costs, such as staff time exceeding 25% of the eligible total project costs
  • Internal project management costs
  • Day-to-day running costs, for example consumables, stationary, overheads
  • Subsistence costs for staff at trade events
  • Stock items
  • General training
  • Integration of existing software applications
  • Corporate responsibility items - health and safety
  • Items purchased through hire purchase agreements
  • Upgrading existing IT systems, websites
  • Software licences
  • The purchase and integration of market proven web-based products/services
  • Marketing plans
  • Marketing material, for example hard copy brochures, social media costs
  • Costs associated with writing and submitting this funding application, including consultants, advisors and internal staff time. Free support is available from the Herefordshire Growth Hub, please email business@herefordshire.gov.uk for an appointment
How much you can apply for

Revenue grants are available for businesses, for up to 75% of the total eligible project costs.

  • Minimum grant £7,500 - project costs must be at least £10,000
  • Maximum grant £24,999 - project costs must be at least £33,333 (a higher grant may be considered in exceptional circumstances)
  • Start-up businesses trading less than 12 months (but more than 6 months) already operating in the defence and security sector, the maximum grant is capped at £10,000 (project costs must therefore be at least £13,334)
How to apply

Complete the expression of interest form (EOI)

The Grant Team will review your project ideas and, if it meets the eligibility criteria and objectives of the fund, you will be invited to submit a full application with supporting papers. You will have up to four weeks to complete this form. Please note, the scheme can be closed at any time due to budget constraints. It is, therefore, advisable to submit your EOI and full application (if invited) as soon as you can.

Fraud statement

By completing the application or accepting the grant, you are confirming that you are eligible for the grant. If your eligibility circumstances change after making an application or receiving this grant, you must notify us immediately.

Herefordshire Council will not accept deliberate manipulation or fraud, and any instances will be actively investigated. Any individual who falsifies their records or dishonestly provides inaccurate information to gain a grant will face prosecution. The council reserves the right to recoup funds or grant awarded equipment and claw back any grants given in error.

The personal information we have collected from you will be shared with fraud prevention agencies who will use it to prevent fraud and money-laundering and to verify your identity. If fraud is detected, you could be refused certain services, finance, or employment. Further details of how your information will be used by us, fraud prevention agencies, and your data protection rights.

What happens next

If you have submitted an expression of interest form, we aim to review this within one week. If your project meets the minimum requirements, you will be invited to submit a full application with the supporting papers. This does not guarantee that you will be awarded a grant at a later stage.

You will be required to submit (along with your full application form):

  • Two quotes per item (one quote may be considered in exceptional circumstances)
  • Bank statement or other match funding evidence for the total cost of the project
  • Previous two years' accounts (including profit and loss) where applicable and management accounts if more than six months out of date
  • Project action plan - to ensure project is deliverable and outcomes achieved within the grant time frame (template will be provided)

We will endeavour to communicate all decisions within four weeks of your submission. However, this will depend on the complexity of your project and the number of supplementary questions and queries we may have on your application.

If your application is successful:

  • You will need to sign the grant offer before placing an order/starting the project. No work or items to be ordered before you return the signed offer letter
  • All projects must be practically and financially completed within five months of acceptance of the grant (if not earlier). No later than 1 March 2027
  • Grants are released on completion of the project. Stage payments may be considered on a case-by-case basis. All grants are released upon submission of a grant claim form, invoices and evidence that the costs have been paid and satisfactory progress has been achieved towards the activity detailed in your project action plan. The grant is not paid in advance and final stage payment will be released when the whole project is complete
  • You cannot pay for any grant costs with cash
  • You will be required to report on your project and provide evidence, as appropriate, of the outcomes of your project at completion
  • Failure to provide the report and evidence may result in the grant being repaid
Further information

If you would like support with developing your proposal or completing your application form, Herefordshire Growth Hub provide a free service. To arrange an appointment, please email business@herefordshire.gov.uk

If you have a query relating to the information above, please email the Grant Team at RDI@herefordshire.gov.uk

UK Subsidy Control Regime

This grant scheme will be administered under minimal financial assistance rules. Applicants must ensure that they are compliant with the subsidy control rules. You are asked to confirm this within the full application form.