Ineligible Expenditure
The Three Pillars Fund cannot invest in the following:
- costs incurred prior to the start of the Fund;
- activities of a political or exclusively religious nature;
- work or activities that any person has a statutory duty to undertake;
- depreciation, amortisation and impairment of assets purchased with the help of the Fund;
- interest charges unless under an approved State Aid scheme;
- service charges arising on finance leases;
- costs resulting from the deferral of payments to creditors;
- payments for unfair dismissal or redundancy;
- payments for unfunded pensions;
- compensation for loss of office;
- bad debts arising from loans to employees, proprietors, partners, directors, guarantors, shareholders or a person connected with any of them;
- gifts and donations;
- entertaining;
- VAT reclaimable from HM Revenue and Customs;
- statutory fines and penalties;
- criminal fines and damages;
- legal expenses in respect of litigation;
- (where the size of the investment is such that so far as investments in a single enterprise constitute aid measures they are within the ceiling specified in Article 2 of the block exemption for de minimus aid under the State Aid Rules) any investment made in any of the excepted sectors specified in Article 1 of the block exemption for de minimus aid;
- (where the size of the investment in a single enterprise exceeds the ceiling specified in Article 2 of the block exemption on de minimus aid under the State Aid Rules) investments made contingent on the use of domestic over imported goods or for the support of any of the activities specified in Article 1.2(a) and (b) of the block exemption for aid to SMEs
- any business venture which is not at start up or early stage of operations or which is not seeking to expand or diversify;
- any investment made for refinancing existing activities or in support of normal operational costs; and
- the support of any business which is in difficulty.
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