ERDF will not be the only source of funding for a project. Other finance should also be in place to contribute to the project costs. This is referred to as match funding.
Public Sector finance is eligible to be used as match funding. A public match funder is an organisation which directly or indirectly receives over 50% of its main funding from central or local government. Eligible public match funding streams include, but are not limited to: Advantage West Midlands, Local Authorities, Lottery Funders, Higher Education Funding Council for England (HEFCE), Research Councils, Technology Strategy Board, and Capacity Builders.
Private Sector cash contributions were introduced into the Programme as an eligible source of match funding in August 2009 in response to the reduced availability of public sector finance. Private sector cash contributions can be included in the funding package provided they are contributing to eligible costs and can be audited to the same standards as the other funding sources. SME in-kind staff time remains ineligible for use as match funding. AWM are working with partners to determine the amount of private sector funding to be allocated to each priority axis in the Programme’s financial tables. In parallel, the necessary changes to the programme management systems and associated documentation are being introduced.
Contributions in kind, such as the provision of volunteer time or the discounted sale of equipment, are no longer eligible to be used as match funding. The exception to this is the donation of a building or land, where a clear valuation can be made.
All match funding must be spent in accordance with the ERDF eligibility rules.
Monies which are already matched with European funding such as ESF, ERDF, Leonardo, and Framework 7, cannot also be used as match to draw down funding under this programme.
In the main, ERDF will contribute 50% of the eligible project costs. In exceptional circumstances, different contribution rates may be possible, but these will need to be agreed with the ERDF Programme Management Team.