Qualifying for the Rural Enterprise Scheme (RES)

The Rural Enterprise Scheme (RES) which was designed to provide assistance for sustainable development projects within communities. The scheme has since closed and is no longer taking applications: rural funding in England now runs through other DEFRA schemes, so check GOV.UK for what is currently on offer.

There was a wide range of projects covered by the scheme, but the primary aim was to help farmers adapt to the changes in the market and develop their business by investigating new opportunities.

Other types of projects would include those that have the potential to produce a commercial return, or those that will provide communities with social or environmental benefits.

It can be argued that one of the main aims of RES is to promote and encourage innovation within individual communities, and as a result of this there is no specific list of projects that would be eligible. But, this doesn't mean that just any old project can benefit from this scheme.

The list of things that the scheme will look at, although somewhat vague, includes things like, financial help towards the marketing of agricultural products,set-up costs for basic community services, such as transport schemes for those that are classed as being isolated, or the conversion of old out-buildings to create small businesses like tea shops or farm shops.

The Qualification Procedure

Now although this scheme covered a potentially large array of projects, the amount of funding available was not unlimited. This meant that the grants were awarded on a selective, and regional, basis.

The eligibility process was tough and all applicants had to undergo technical analysis and are compared to other projects that are similar in design and structure to ensure that the one that will provide the most benefits to the community is selected.

It is important that you remember that this scheme was only applicable to those projects in England and also excluded those people who work in areas including Cornwall, the Scilly Isles and parts of Merseyside and South Yorkshire. This is because there are other schemes in these areas that provide funding for these types of projects.

Grant Eligibility Finder

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The Application Process

Although there were no restrictions in place that determined when you should apply by, there was a limited budget. The scheme is now closed, so no new applications can be submitted: check GOV.UK for the DEFRA rural funding schemes that have taken its place.

Regional boards assessed applications £15,000 in funding from the scheme can be fast-tracked. There are also separate procedures in place for those applications that are national and act as a mirror of projects based in single locations.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Show Me The Money

The RES fund didn't limit the amount available to each project because it was actually intended to fill the gap between the true cost of the project and what you could realistically afford. However, the guidelines showed that there were three bands for funding through RES.

Firstly, for those projects that have no, or a minimal amount of economic return the funding awarded was between 50 per cent and 100 per cent. Projects like these, for example, would include those that are specifically designed as an aid to the community or local environment and don't necessarily provide a substantial amount of profit for the applicant.

Those projects where the return is the main objective, the amount of funding available was reduced to 30 per cent to 50 per cent. And finally, the projects that have the potential to return in excess of 25 per cent of the initial investment, then the funding was between 15 per cent to 30 per cent. Current DEFRA schemes have their own rates, so check GOV.UK rather than relying on these figures.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Grant Eligibility Finder lets you tell us what you need funding for and we will match you with the types of UK grant most likely to accept your application. Try it now →