UK Local Growth Fund
Pembrokeshire Start Up Fund - Guidance and how to apply
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11. Post completion - Terms and conditions
The information shown herein is for guidance only, and the legal terms and conditions of the grant are set out in the offer letter of the approved applications. Guidance is still in draft and subject to change.
1. Introduction
Pembrokeshire County Council continue to be fully committed in supporting economic development and businesses throughout the county and as such have secured funding to deliver Pembrokeshire Business Start Up Grant which is funded by the UK Government via the Local Growth Fund
The aim of the grant package is to strengthen local entrepreneurial activity and support SME’s at all stages of their development and progression to start, sustain and grow.
The Start Up Fund will encourage and support the creation of new businesses in the county, resulting directly in the creation of new jobs, therefore improving the local economy.
The grant will be open for application between the 02 July 2026 and the 29 of January 2027 or until the fund is fully allocated.
The Fund will be a business grant scheme, which will include support towards capital expenditure projects and specialist revenue expenditure (not including ongoing running costs), where new jobs are a created because of the financial support.
The guidance is subject to change due to being a draft document currently
2. The offer
- Grants available between £1,000 and £15,000.
- Each grant award will be based on 50% of eligible costs OR a maximum of £7500 per job created whichever is the lesser. (At least one new job must be created to access the fund) The business owner can be included as a new job
- The minimum grant award is £1000 (based on at least one part-time new job created) and the maximum grant award per business is £15,000 (based on at least 2 jobs being created)
- We encourage that all jobs being created with the support of the grant to be paid the Real and Living Wage (opens in a new tab)
- The fund will support new entrepreneurs with their business start-up aspirations by providing financial contribution towards capital expenditure projects and/or specialist revenue expenditure, which will either enable further capital investment projects or a specific business start-up proposal which may involve high revenue costs.
- Two part time jobs are considered as one full time equivalent. If you are only creating a part time job (Min. 16 hours per week) the grant will only be paid on a pro rata basis i.e., max of £3750 for a part time job
- Each business can only apply for the Start Up Fund once but may apply for the Pembrokeshire Business Growth Fund for separate projects if they grow the business and create further jobs in the future. The outcomes from the start up fund, i.e., commencement of trading and jobs created must be delivered before the application for the growth fund can be considered.
- All jobs created as part of the grant must be claimed within 3 months of the date of final grant payment or 29 January 2027 whichever is the earliest date
- It is important to note that grants are paid retrospectively, applicants must have the financial means to purchase the item(s) in full up front, and then claim the grant value from Pembrokeshire County Council following the claims process (please see in the terms and conditions within this document)
- Both claims must be submitted within 4 months of the offer letter or by 29 January 2027 the latest whichever is the earliest date. To support cashflow, the grant team will consider the submission of two claims, but prior agreement must be sought from the Council.
- All payments made for eligible expenditure must be evidenced by copy of the invoice and proof of defrayment (defrayment can only be evidenced through the provision of a bank statement showing full payment going out of the account to the supplier).
3. Eligibility
The Pembrokeshire Business Start Up Grant is funded by UK Government via the Local Growth Fund and delivered by Pembrokeshire County Council and as such is only available for application to groups or individuals with viable new businesses proposals to be located within Pembrokeshire and will be operating within or servicing one of the eligible sectors. The grant is only available for prestart businesses (not yet trading)
The grant will be open for applications between July 2026 and January 2027 or until the fund is fully allocated.
Support is aimed primarily at new businesses to be operating in or servicing the following growth and foundation sectors:
- Advanced materials and manufacturing
- Construction
- Creative industries
- Energy and environment
- Finance and professional services
- Information technology and telecoms
- Life sciences
- Food and drink
- Tourism
- Retail
- Care
Applications will be considered on a case-by-case basis subject to their potential contribution and value to the local economy, e.g. creation of jobs in the county’s primary and secondary town centres, rural areas, link to key strategic projects.
** Please note that applications from start up single unit self catering accommodation providers must create new jobs other than the business owners as a result of the grant support. Additionally, applications from self catering accommodation owners where the income from the property is not the owners main source of income will be ineligible.
If applications are made by owners of start up accommodation with multiple units (3 or more) or offer services such as bed and breakfast and /or offer activities as part of the tourism package, we will consider the creation of additional jobs, including the business owner(s). These applications will be considered on a case by case basis.
The following sectors are ineligible for support: - primary agriculture production, forestry, aquaculture, fishing, unregulated health invasive procedures, and statutory services, e.g., Primary health and education.
The Fund is available for SMEs of all sizes which aim to implement their start up and growth plans and must result in the creation of new jobs. Applicants must therefore demonstrate their growth plans (and provide evidence where applicable) within the application process.
The following sectors/businesses/projects are ineligible for support: -
- Primary agriculture production
- Forestry
- Fishing
- Statutory services, e.g., Primary health and education.
- Unregulated Health Invasive Procedures
- Any business with more than 250 employees
- Any business with a turnover greater than £50m
- Any business or proposed grant project without necessary planning permission
All expenditure associated to the grant must be purchased and claimed within 4 months of the date of approval letter or no later than 29 January 2027, whichever is earliest. No extensions will be given for claims to be submitted. The proposed business and associated jobs must be created within 6 months of the final payment of grant or 28 February 2027 whichever is the earliest. Monitoring of the business and jobs created will take place and evidence will be required. Failure to achieve the committed outputs could result in the claw back of grant funds.
Upon giving reasonable notice, Pembrokeshire County Council reserves the right to monitor and maintain evidence at 1, 3 and 5 years from the receipt of a grant application.
4. What can you use the grant for?
The grant will apply to capital expenditure within an approved project and can include:
Eligible Costs
Capital expenditure:
- Purchase of new or second hand equipment, e.g. plant, machinery, specialist equipment, etc. Please note plant could include items such as forklift trucks, telehandlers, excavators, etc. General vehicles such as vans and cars are not eligible. **see note below re: purchase of second hand items.
- Specialist commercial vehicles e.g. refrigerated vans, van / trucks for specialised purposes, sign written and fitted out for a specific commercial use may be considered on a case by case basis. Note – sign writing cannot be considered.
- Purchase and installation of equipment to create or enhance outdoor trading space, e.g., shelters, gazebos, etc. Please note you will need to provide evidence of the relevant permissions if appropriate, i.e., planning permission, licences, etc.
- IT and Telecom hardware if linked directly to the delivery of the project
- Fixtures and fittings, furniture, and general office equipment etc. as part of a new office.
- Tangible marketing items such as exhibition display stands, pop ups and banners, signage. These must be bilingual to be eligible for grant support.
Specialist revenue expenditure: (these costs must be associated to the capital expenditure linked to the grant application) Stand alone revenue expenditure as noted below will not be eligible.
- Specialist / technical training (not necessarily accredited and only if associated to capital expenditure included in the application) e.g. training on use of machines, etc.
- Commissioning / Installation of Machinery (only if associated to capital expenditure included within the grant application)
- Specialist software (only if associated to capital expenditure included within the grant application)
Charges associated to the delivery of any capital equipment. Please ensure these costs are highlighted within the quotes (only if associated to capital expenditure included within the grant application)
Initial creation of website to support the business over forthcoming years (not annual subscriptions or costs for ancillary changes)
5. What you cannot use the grant for
Ineligible expenditure includes:
- General revenue expenditure such as, staff costs or any other taxes, hire purchase/lease purchases
- Uniforms / Branded workwear
- General Vehicles such as cars and vans
- Marketing and promotion expenditure, single use promotional materials such as business cards, headed stationary, etc
- No major building works. Minor works that are ancillary to the main capital purchase will be permitted
- Repair, maintenance and decoration costs, including general flooring and carpets
- Soft furnishings (curtains, cushions) and decorative items.
- Replacement of existing fixtures and fittings
- Contingency fees and costs which were committed or spent before the offer and acceptance of the grant
- Working capital costs such as stock, rent, rates, administration
- Membership & affiliation to governing bodies, etc
- Costs of work being carried out as a legal statutory requirement, inc. planning permission
- Feasibility studies
- Items purchased from a non-commercial or private sellers
- Professional fees associated with general business consultants including business plans/ BID writing and any fees associated in completing an application for grants purposes
General conditions:
- If the business is VAT registered, then VAT will be ineligible. VAT will be payable in cases of non-VAT registered companies. If the applicant is not registered for VAT at the point of application but aims to be registered within the following 12 months, the grant will be payable based upon the NET costs (as the business will be able to claim VAT retrospectively)
- No expenditure should be incurred before grant approval as the grants cannot be awarded retrospectively. We cannot consider items that have been committed for purchase e.g. a security deposit without prior consent from the grants team. This will be given case by case consideration.
- Cash purchases will not be considered for grant payment.
- Items purchased through lease purchase, hire purchase, extended credit agreements/finance leases will not be considered for grant funding.
- Purchases from private sellers / individuals will not be considered, e.g Facebook Marketplace, etc. We only consider purchases from commercial sellers / suppliers
- Items bought via credit cards are eligible. ** Limited Companies must use a company credit card for purchases. We encourage sole traders and partnerships to use business banking / credit cards.
- Grants will not be payable where an applicant’s business rates and/or council tax are in arrears.
The grant must not be used for:
- Party political purposes
- Promotion of particular secular, religious or political views
- Gambling
- Pornography
- Offering sexual services
- Any kind of illegal activity; or
- Any kind of activity which in the opinion of the Council could bring the Council into disrepute which includes but is not limited to non-regulated and invasive procedures, products and treatments, nude or semi-nude modelling, gaming centres, sun bed services, medicines, acupuncture, vape shops, social media influencing, tattooists, speculative building, CBD oil products and cryptocurrency.
6. Second hand equipment
The purchase costs of second-hand equipment are eligible for grant under the following conditions: -
- The seller of the equipment shall provide a declaration stating its origin and confirm that at no point during the previous seven years has it been
- purchased with the aid of national or European grants.
- The price of the equipment shall not exceed its market value and shall be less than the cost of similar new equipment, and
- The equipment shall have the technical characteristics necessary for the operation and comply with applicable norms and standards, e.g. Health and Safety
7. Application and assessment
All completed applications will be considered on first come first served basis until the fund in fully allocated.
Each application will be assessed against the outputs and outcomes of the grant project, i.e.
- Value for money / grant per job created ratio and private sector investment levered by the grant as well as the viability of the business plan to support the start-up and sustainable growth plans.
- Number of jobs created
The expression of interest will then be assessed for eligibility purposes and if approved you will be invited to submit a full application.
Each applicant must then complete and return the following:
- Application Form,
- Business plan (the business plan should include a section on how the business is implementing sustainable business practices)
- 2 years projected forecasts (cash flow and/or profit and loss)
- Formal written quotes for the items included in the application (please see below for guidance)
- Welsh Language Standards - please see further information below
It should be noted that the Pembrokeshire Business Start Up Fund is a discretionary grant and is subject to approval by Pembrokeshire County Council. Each application will be assessed by a panel which meet monthly to consider applications which meet the standard by the given deadline.
Please Note - Applications will need to be in a position to proceed before they are presented to panel so essential requirements such as match funding, planning permission (where applicable), etc. must be confirmed before the grant team will prepare the application for consideration at panel.
Grant value will be calculated during assessment, based on information provided and will be confirmed in writing as assessment is concluded. Refer to The Offer, (see above). The applicant will have the opportunity to accept the proposed award prior to a formal agreement being issued.
8. Procurement rules - Getting quotes
PCC LGF Procurement Guidance 2025/26 Value below £90,000
(inc VAT) For use with LGF Anchor Grant Schemes within Pembrokeshire
Before procuring goods and services included in your grant applications, applicants are expected to conduct the quotation process in a manner which ensures openness, value for money and fairness and must follow the procurement procedures as they are outlined in this section.
Item cost or aggregated contract value up to £999.00 (inc.VAT)
- 1 quote must be received and retained.
- Best value for money must be obtained and reasonable care taken to obtain goods or services of appropriate quality at a competitive price.
Item cost or aggregated contract value £1,000.00 - £11,999.00 (inc.VAT)
- A minimum of 2 Quotations must be sought from competitive sources. The quotes must be based on the same specification and evaluated on a like for like basis.
- Best value for money must be obtained and reasonable care taken to obtain goods or services of appropriate quality at a competitive price
Item cost or aggregated contract value £12,000.00 - £29,999.00 (inc. VAT)
- A minimum of 3 Quotations must be sought from competitive sources. The quotes must be based on the same specification and evaluated on a like for like basis.
- Best value for money must be obtained and reasonable care taken to obtain goods or services of appropriate quality at a competitive price.
Contract value £30,000.00 -£89,999.00 (inc. VAT)
- Seek 3 competitive quotes using Sell2Wales quick quotes if a public body.
- If not a public body, demonstrate that 3 quotes have been obtained from the open market. To do this, you must advertise your requirement in regional or specialist press stating a deadline for submission of quotes thereby giving the open market an opportunity quote. The minimum deadline should be 14 days from the date of publication; however, this could be longer if the items are specialist or complex, or you consider a longer notice period appropriate
- A documented record of the quotes sought the evaluation process and the decision to award must be recorded.
Avoiding conflict of interest with quotes
Any perceived or actual conflicts of interest between you and the suppliers that are asked to provide quotes - for example getting quotes from related companies, must be explained in the supporting documentation. Where conflicts potentially exist, mitigating action must be taken and documented.
9. Welsh Language Standard
The Welsh Language Standards Compliance Notice places a statutory requirement on Pembrokeshire County Council to ensure that all grants it awards has a positive effect on opportunities for persons to use Welsh, and the Welsh language is not treated less favourably than English.
Applicants will be expected to set out their commitments to the Welsh language in their answer the questions on the application form and, once agreed with the grant officer, they will be included as terms and conditions for the successful applicant.
10. Subsidy Control
This scheme is covered by the current UK Government Subsidy Control Act (2022). The total amount of Minimum Financial Assistance (MFA) received over a rolling period of three fiscal years should not exceed £315,000 per business*. It is the applicant's responsibility to monitor the level of Minimum Financial Assistance received. You will be asked to PLACE that this has not been exceeded in the event
of an offer being made. [* The MFA financial threshold applies at company group level.]
All bids must also consider how they will deliver in line with subsidy control as per
UK Government guidelines (opens in a new tab)
Where applicants do not adequately demonstrate that the proposed project is compliant under the UK Subsidy Control Regime it may be considered ineligible, and your application could be rejected.
11. Post completion - terms and conditions
It should be noted that the Pembrokeshire Start Up Fund is a discretionary grant and is subject to approval by Pembrokeshire County Council.
The grant may be recovered should the business cease to trade, relocate or the items purchased as part of the grant are sold on within 5 years of award.
Limited Companies must use the business bank account to purchase all the items associated to the grant. It is encouraged for Sole Traders and partnerships that all goods purchased in relation to the grant are purchased using the business bank account.
It is important to note that grants are paid retrospectively, so applicants must have the means to purchase the item(s) in full up front, and then claim the grant value from Pembrokeshire County Council.
Should the application be successful, the grant money is paid direct into the bank account of the applicant business. This is based on receipt or evidence of purchase and defrayment i.e. original or on-line printed bank statements and original invoices to confirm expenditure.
Any deviations to the application in terms of suppliers and expenditure must be requested to the grant team prior to purchase. Failure to seek approval may result in the grant not being paid for those items.
Photographic evidence of all items associated to the grant will be required to support the claim. In some instances, a site visit will be required.
The applicant must accept the terms and conditions of the grant by completing the Notification of Approval and Terms & Conditions within 30 days from receipt. All expenditure associated to the grant must be completed within 4 months of the date of approval letter or 29 January 2027 whichever is the earliest date. No extension will be given for the submission of the claim.
The job(s) created which are associated with the projects must be achieved / sustained within 6 months of the final payment of grant or 28 February 2027 whichever is the earliest date. Monitoring of the business and jobs created and/or safeguarded will take place and evidence will be required. Failure to achieve the committed outputs could result in the claw back of grant funds.
For all grant purposes monitoring of the claim and evidence will take place with prior notice at 1, 3 and 5 years from the date of award of the grant.
Should the project not proceed within the period stipulated in the offer of grant,
the offer of grant will automatically lapse. Any variation to the Terms & Conditions set out in the Approval Letter must be requested and agreed
Cash purchases (or use of gift/cash cards) will not be considered for grant payment.
Items purchased with credit cards are eligible, but applicants will need to evidence the transaction on their credit card bill. ** Limited companies must use the business credit cards to purchase items associated to the grant rather than personal cards of the director(s).
Grants will not be offered or paid if the business or applicant is in arrears with any payment to any of the participating local authorities operating the scheme.
12. Claw back of grant funds
Funding shall be withheld and/or, insofar as payment has been made, the grant recipient shall repay funding either in whole or in part, including if:
1. a) there has been an overpayment of funding;
2. b) during its economic life, the project undergoes substantial change defined as being used for purposes other than those specified in the application, or, having a change of owner without notifying Pembrokeshire County Council.
The economic life is the period up to 5 years from date of the final payment of grant and repayment of funding will be required as follows::
- Within 1 year - Funding to be repaid in full
- Within 2 years - 80% of funding to be repaid
- Within 3 years - 60% of funding to be repaid
- Within 4 years - 40% of funding to be repaid
- Within 5 years - 20% of funding to be repaid
- After 5 years - No funding to be repaid
The above are minimum repayment requirements
If the jobs are not created and/or safeguarded, then the County Council has the right to reclaim the grant in part or in full.
The grant must be repaid in full on demand if:
- the applicant is found to have made any misrepresentation in connection with the application.
- If the jobs are not created and/or safeguarded, then the County Council has the right to reclaim the grant in part or in full.
The grant must be repaid in full on demand if:
- The applicant is found to have made any misrepresentation in connection with the application.
- Ceases to trade
- Is a significant change from the details you provided in your application
- Sells any items purchased with grant money
- Changes ownership
- Moves out of Pembrokeshire or is sold
13. Data protection and privacy
Pembrokeshire County Council is the data controller for the personal information you provide on this form. Your information will be used in the exercise of our official authority and will not be used for any other purpose. Please note that we may check the data you provide here against other Council and UK Government datasets in order to verify your application and prevent fraud. For further information on how Pembrokeshire County Council handles your data, please see our corporate privacy notice.
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 and these fraud prevention agencies, and your data protection rights, can be found by visiting: CIFAS (opens in a new tab)
14. How to apply
Before we ask you to make a full application, you will need to submit an Expression of Interest (EOI) which outlines your business proposal and costs.
You will need the following information:
- Your details
- Business details and description of its main activity
- Indicative project costs
- Details of any additional funding / finance
Please note that you must not commence your project before funding has been awarded. Any works commenced /expenditure incurred prior to funding award will be deemed ineligible.