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Checklist for IGNITE Applicant Requirements

This checklist should be used to determine if the project is eligible for funding under the IGNITE Grant Facility. Applications that meet all the following requirements (indicated by a Y) may be submitted for consideration. If a requirement is not applicable please explain why in the comments column.

Project Requirements Y/N/NA Comments

1. TThe product or service is new and innovative as

described in Appendix 1.

2. Company is registered with the Companies Office of

Jamaica

Registration #:

3. Company has a business Tax Registration Number (TRN)

or is willing to acquire a TRN during the project

TRN#:

4. Company has Tax Compliant Certificate or able to

obtain one by the submission date

Expiry date:

5. The business is or will be operating in Jamaica

6. Entrepreneur has been a member of the incubator –

accessing physical or virtual incubation services.

Date registered:

7. The enterprise is categorized as micro, small or

medium according to the definition at Appendix 1

8. The entrepreneur is operating in one of the eligible sectors defined at Appendix 2

9. The product/service being developed is environmentally friendly

10. The project promoter is actively seeking grant funding and other funding to commercialise the product or service.

11. Grant funds being requested constitute 70% or less of the project cost (the funds required to commercialize the product)

12. Proof of other funding for the project (commitment letter, bank statements etc.) is available or can be made available within 3 months of receiving grant approval.

13. The use of funds is in line with the list of eligible costs listed at Appendix 3.

 

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14. The promoter is willing to provide information for monitoring and evaluation of the project/business for 2 years along with assessing project impact for at least 4 years after the project has ended.

15. The company has the ability to create additional employment within 2 years of being awarded the grant

16. The grant required is less than or equal to J$4M

 

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APPENDIX 1 - Definition of Terms Term Definition An Innovation

Is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations. The minimum requirement for an innovation is that the product, process, marketing method or organizational method must be new (or significantly improved) to the Jamaican marketplace. A broad definition of these terms will be applied to this Pilot Programme. Specifically, “Technological innovation” will refer to the generation and use of new product or processes, while “Non Innovation” refers to those firms that utilize already existing technology.

Business Sector Intermediary (BSI):

Institutions (such as Business Incubators, Accelerators) officially registered in Jamaica that, under this Pilot Programme, will be responsible to: channel the funds to the entrepreneurs and firms; contributing to the presentation of proposals and assisting DBJ in the monitoring of the objectives agreed with each individual beneficiary.

Coaching and Mentoring

Confidential, substantive, individual advice, guidance or instruction that is provided to both current and prospective business owners. It involves a process of in-depth, substantive, two-way communication between the client and counsellor pertaining to starting, managing or growing a small business. The goal of coaching is to increase the management capability of the business owner and is viewed as an educational process.

IGNITE Innovation Grant, from New Ideas to Entrepreneurship. This is grant fund for innovative entrepreneurs, targeting new businesses through existing M&SME development programmes and incubator programmes.

M&SME Micro, Small and Medium-sized enterprises - A business entity organized for profit, with a place of business located in Jamaica, and which operates primarily within Jamaica or makes a significant contribution to the Jamaican economy through payment of taxes or use of Jamaican products, materials or labour. These companies must operate in the productive sectors should at least be registered as a sole trader and have the following characteristics:

Firm Size No. of employees

Total Annual Sales/Turnover

Micro ≤ 5 ≤J$10 million Small 6 – 20 > $10 million ≤ J$50 million

Medium-sized 21 – 50 > J$50 million ≤J$150 million

Source: Ministry of Industry, Investment and Commerce (MIIC) M&SME Policy The following types of companies are excluded:

• Government ministries/agencies • Financial institutions (regulated or unregulated) • Non-profit organizations • Pre-venture entrepreneurs (companies not yet in operation) • Large corporations (greater than 50 employees with annual turnover greater

than J$150 million)

 

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Physical Incubator

An organization designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services that could include physical space, capital, coaching, common services, and networking connections.

Start-up A company working to solve a problem where the solution is not obvious and success is not guaranteed. The key attribute of a start-up is its ability to grow. Specifically, a start-up is a company designed to scale very quickly. For this IGNITE Pilot Programme, we will consider start-ups to be existing firms, residents of Jamaica, with less than 24 months since the registration of their business with Company’s Office of Jamaica.

Training A training programme is defined as an activity or event presented or co-sponsored by a resource partner or third party that delivers a structured programme of knowledge, information or experience on a business-related subject and must last for a minimum of one hour and include two or more clients.

Virtual Incubator

A fee is charged which gives entrepreneurs access to the incubator program including business support services, business assistance and counseling, administrative support services, facilities and shared equipment access, as well as access to sources of capital, while situated at their own business locations.

 

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APPENDIX 2 – Examples of Projects for eligible sectors under IGNITE

Productive Sectors Examples

Software and IT industries

• New multimedia software applications • Object-oriented programming techniques in automatic data

processing systems development. • Development of new business management systems • Development of new project management methods.

Creative industries • Film and/or audio production and postproduction services

• Video games • Advertising production and postproduction • Fashion design (based on new materials or methods)

Applications of biotechnology to local production

• Development of new varieties of seeds (resistant to drought, etc.)

• Development of pesticide free fertilizers Life sciences • Development of diagnostic kits

• Production of medicines • Development of new products and services for disabled people

Business Process Outsourcing (BPO)

• Design and build big data applications to analyse and solve real-world problems

Knowledge intensive business sectors (KIBS)

• Novel solutions related to payment methods and access to finance

• Architectural design companies (based on LEED standards, use of new methods, materials, etc.)

Agricultural products with export potential

• New exportable agricultural goods • Developing a new use or application from an existing

agricultural product • Production of inputs and products currently served with

imported goods Light-manufacturing • Design and manufacturing of new products such as small

furniture etc. using new materials, local materials, traditional methods

Products and services aimed at satisfying demand by the Tourism and Hotel Sectors

• Developing solutions aimed at achieving a more efficient use of resources (water, electricity etc.)

• Development of new products currently served by imported goods or services in hotels

 

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APPENDIX 3 – Costs Covered Under IGNITE

Allowable Costs

The project activities may greatly vary across entrepreneurs. This will have bearing on what is allowable under each circumstance. However, the critical rule will be that such costs are reasonable and integral to creating viable and scalable enterprises. They may include:

a. Administrative expenses (including marketing) amounting to no more than 15% of the grant amount.

b. Equipment and machinery required to executing the project whether new or used (up to 70% of the total cost of the project)

c. Training activities related to the project activities, including training in management, protection of IP.

d. Acquisition of technological licenses e. Consultancies and technical assistance f. R&D personnel and R&D activities. (Hired personnel should not be family members) g. Legal protection of the research results (patents and copyrights) h. Scaling up, pilots and prototypes i. Technology acquisition and engineering work associated with it; j. Technology licensing and transfer to the enterprise; k. Implementation of quality systems; l. Construction of prototypes or pilot plants, in which intangible expenses in m. R&D, technological developments, and engineering efforts have a significant impact on their

structure. n. Activities leading to the launching of the product to the market, including advertising (up to

10% of the total cost of the project) o. Assistance to formulate this project (up to 5%) p. Public utilities exclusively directed to the execution of the project q. Acquisition of used goods, including machinery and equipment r. External fees and labour costs s. Prototype development including design, testing, and field trials. t. Market testing, u. Raw materials and consumables necessary to achieve proof of concept. v. Equipment/software necessary to achieve proof of concept. w. Costs in relation to applications for Intellectual Property Rights (IPR)

 

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Specific exclusions

The following costs are not eligible for funding by grants:

a. Staff Salaries b. Costs incurred before the award of the grant c. Costs of legal incorporation d. Purchase/rental of non-critical assets (e.g. buildings, vehicles and furniture). e. Construction of infrastructure except where inextricably linked to proof of concept. f. Utilities g. GCT (only if the beneficiary is registered for this tax) h. Debt restructuring, payment of capital gains, or recovering of already invested capital i. Transfer of assets including equities, shares in social capital j. Payment of subsidies or unemployment benefits k. Acquisition of (real estate) properties l. Payment of local and national taxes, permits, etc. except GCT m. Payments to individuals or firms’ belonging to individuals including in the principals of the

beneficiary companies