Guidance

Guidance for diversification and new forms of income

Updated 23 February 2024

1. Introduction

Funding in this area will support the diversification of seafood sector businesses into other sectors of maritime economy with the purpose of creating new forms of income.

Funding can be applied for under the following measure:

1.1 M21 Diversification and new forms of income

Please note this information is for guidance only and is not exhaustive or binding. If you are unsure whether an item is eligible, please check the General Guidance and if you are still unsure contact the MMO.

2. Projects you can apply for

Projects can include:

• Support for setting up new practices, processes, or management and organisation systems for new forms of income and ongoing project support;
• Activities focused on capacity building including infrastructure projects and new equipment, and training and networking with a view to support business diversification;
• Diversification to sustainably farm a new species or target a new species where no detrimental impact;
• Modification of fishing vessels in order to undertake work servicing aquaculture;
• Activities to perform scoping and feasibility studies to identify potential areas for diversification for seafood businesses or fishing vessels;
• Modifications for tourism excursions and passenger travel.

Diversification projects will only be supported where there is no detrimental impact to the environment.

Support for complementary diversification of income will only be granted to aquaculture enterprises if these relate to the core aquaculture business, including angling tourism, environmental services related to aquaculture or educational activities concerning aquaculture.

2.1 Projects excluded from funding

Funding will not be provided for projects where the primary focus does not relate to diversification activities within the maritime economy.

2.2 Result indicators

FaSS result indicators have been designed to measure the benefits delivered by a project. Result indicators are specific to the type of project you are applying for. For projects under M21 Diversification and new forms of income, the following indicators are applicable:

3. M21 Diversification and new forms of income

Indicator	Information you must provide
Change in net profits	Current profit (£) Expected profit (£) after the project Company accounts for the last 3 years.
The expected and actual change in net profit will be used to determine the project’s success.
Employment maintained (FTE) in the fisheries sector or complementary activities	Number of employees working in your business before the project. Expected number of employees working in your business after the project.
The expected and actual change in number of employees will be used to determine the project’s success.
Dissemination activities undertaken	Information on which of the following best describes your project: 1. Social dialogue - National; 2. Social dialogue - Regional; 3. Social dialogue - Local; 4. Networking; 5. Exchange of best practice between stakeholders; 6. Training programmes Number of activities, events, meetings or training programmes you expect to undertake. Number of participants expected to be involved in these activities, events, meetings or training programmes.
The number of expected and actual participants involved in the project will be used to determine its success.
Training days funded	Total number of training days expected to be created as a result of your project. Schedule of expected training dates. Number of participants expected to be involved in training.
The number of expected and actual training days and participants will be used to determine the project’s success.
Number of businesses created	Total number of businesses expected to be created as a result of your project.
The number of expected and actual businesses created will be used to determine the project’s success.

Not all FaSS result indicators will be applicable to your project. You will be asked to choose the most suitable indictor to demonstrate the benefits of your project.

Once the project is complete you will be required to provide evidence as part of post project monitoring to show the actual benefits achieved by your project.

4. Funding available

The minimum and maximum funding available for M21, Diversification and New Forms of Income, are outlined below:

4.1 Limits of Funding Available in FaSS Measures

FaSS Measure	Minimum Grant Value Available (£)	Maximum Grant Value Available (£)
M21 Diversification and New Forms of Income	500	100,000

Every project will require a level of match funding. The level of funding you are required to provide will depend on your business or organisation type. Please see the general guidance for more detail.

Every project will require a level of match funding. The level of funding you are required to provide will depend on your business or organisation type.

It is your responsibility to source and provide match funding, such as business loans or cash resources. You must state the source of funding when applying. Before committing any private resources, we recommend you seek independent financial advice.

The amount of money you can apply for will depend on your business or organisation type. There are maximum allocations allowed for each applicant are outlined below:

Applicant Type	Fass%	Match Funding
Public	75	25
Private (Micro Entity)	60	40
Private (SME)	50	50
Private (Non-SME)	30	70
Private (SSCF)	80	20
Private (Fishermen’s Associations)	75	25
Private (PO’s)	75	25

Grant Rates Key:

SSCF - Small scale coastal fishing – vessels under 12m and not using towed gear;
PO - Producer Organisation;
SME - Small and medium enterprises;