Tech Smart Rent Subsidy

Overview

Glasgow City Council has introduced two sources of support to help tech SMEs in the city, the Tech Smart Rent Subsidy and the Tech Smart Meetup Subsidy. Businesses can apply for one or both.

The Council will provide a rent subsidy grant for tech SMEs that can be used to subsidise the costs of co-working space with the right levels of flexibility and suitability, to encourage these businesses to locate in collaborative environments and directly participate in and deliver market square activity, to enable the scaling of your business and workforce.

Please note that this funding is only available until March 2025. Any successful rent subsidy applications that are submitted will be paid from the approval date until 31^st March 2025.

Support Available

A rent subsidy capped at £15K in total to help eligible SMEs with the costs of co-working space in the city.

A condition of the funding requires the SME to organise and deliver market square activity thereby building on the current events and activity already underway in Glasgow and ultimately enhancing the ecosystem.  Businesses can also apply for the Tech Smart Meetup Subsidy which provides funding of up to £1000, details on funding support is available here.

The fund is now open for applications and will close to new applications on 20 December 2024 or when budget is fully allocated (whichever is earlier).

Eligibility Criteria

Grant Eligibility:

To be eligible for the grant, your business must meet the following criteria:

• You must be a small or medium-sized enterprise (as defined in the Companies Act 2006, see here and here for more information)
• You have not signed a commercial lease or (rolling) hire agreement or you have signed a commercial lease or (rolling) hire agreement within 12 weeks prior to the date of submission of your application.
• Businesses must be a tech start-up or SME (our definition of a tech business is detailed below).
• Business co-working premises must be located within Glasgow City boundary (Postcode checker https://www.mygov.scot/find-your-localcouncil).
• Main business operations must be based or planning to set up within Glasgow City boundary.
• If the premises are eligible for NDR this must be to GCC and please be aware of changes here.
• Business must have a business bank account.
• Businesses should not have exceeded the minimal financial assistance threshold of £315,000 over the current andthe previous two financial years.

What is a Tech Start-up/SME?

To be eligible for the Tech Smart - Rent Subsidy your business must be designing, developing and producing technology driven products, solutions or applications.

The Scottish technology ecosystem review defines a Tech Business as "A business that develops a product or service with a high degree of software engineering required to develop it". Further information can be found here

If you're unsure whether or not your business would be eligible, you can get in touch by emailing BusinessGrowth@glasgow.gov.uk

Not Eligible:

The following are not eligible for funding:

• Applicants who are undischarged bankrupts, subject to insolvency proceedings or an individual who has entered into an arrangement with his/her creditors (including a trust deed).
• Applicants who do not meet the STER definition of a tech business as detailed above
• Applicants who are in arrears of Non-Domestic Rates

Application Process

Eligible businesses must complete the online form, including:

• A 500-word description of your business including product, key objectives for the next 12 and 24 months (e.g. product development, investment stage, revenue growth)
• A 250-word (max) outline of why you need this co-working space and grant support
• A 250-word (max) proposal on what market square activity you plan to deliver in each of the 2 years of this grant support e.g. hackathon, a Founders Event, technical focus meetup etc.

Conditions of support

• The subsidy will pay 50% of the annual rent for the co-working space, capped at a maximum of £7.5k per annum.
• Funding will be paid quarterly and calculated pro rata - from the date of award offer and end of UK Shared Prosperity Funding cycle on March 31st 2025.
• Any rent-free period offered by your landlord will be deducted from the value of your grant award
• You must contribute back to the local tech ecosystem in a tangible and proportionate way, e.g. holding/hosting tech meetup event or hackathon, sponsoring a student, contribute a keynote at tech conference/event, etc.
• The grant will be paid as follows:
  • If lease agreement:
    • An advance quarterly payment against 50% of the rental charges, pro rata up to the maximum threshold of £7.5k per annum, on acceptance of the conditions of grant and evidence of a signed lease, made no later than 2 weeks of your date of entry.
    • Subsequent quarterly payments made on production of rental invoice for previous quarter and business bank statement showing previous quarterly rental payment being made.
    • Applicants may not claim cash payments; handwritten invoices and receipts will not be accepted.
  • If (rolling) hire agreement:
    • A quarterly payment against 50% of the equivalent rental charges in arrears, pro rata up to the maximum threshold of £7.5k per annum, on acceptance of the conditions of grant and evidence of a signed hire agreement, made no earlier than 3 months of your date of entry.
    • Subsequent quarterly payments made on production of rental invoice for previous quarter and business bank statement showing previous quarterly rental payment being made.
    • Applicants may not claim cash payments; handwritten invoices and receipts will not be accepted.