Rural business grants

LEADER funding: grants of up to 75% for rural businesses and community groups

LEADER pays up to 75% of the cost of a project, to a ceiling of €200,000, for businesses and community groups outside the five main cities. Ordinary shops are excluded, and nothing you start or buy before the contract is signed can be paid for.

Open

StatusOpen under the 2023 to 2027 programme. Each local group runs its own calls.

Some can

Can a shop, cafe or trade get it?Rural food, tourism, craft and small manufacturing or service businesses can apply. Conventional shops, vehicles, stock and childcare are excluded.

Checked against the official sources on 3 October 2026.

Free PDFGet this guide as a free report, straight to your email.The rules, the steps and a checklist to tick off, in plain English.

What it pays

LEADER is funded through Ireland's Common Agricultural Policy plan for 2023 to 2027. The Department publishes one table of ceilings for the whole country.

Type of projectWho appliesHighest rateHighest grant
Investment in a business, including marketing done as part of the projectPrivate business75%€200,000
Analysis and development, such as a feasibility studyBusiness or community group90%€30,000
TrainingBusiness or community group100%€200,000
Community project with commercial activityCommunity group75%€200,000
Community project with no commercial activityCommunity group75%€500,000

These are ceilings. The rules say a Local Action Group may offer a lower rate, and it decides project by project. The smallest grant it can approve is €1,250, and a group can set its own minimum of up to €5,000.

The Department's own examples give a feel for the range. A karting track in Longford got €112,512 to resurface its track. A wool business in Offaly got €72,910 for an energy-efficient baler. A distillery in Monaghan got €37,125 for a filling unit. A start-up in Cavan selling eggs from vending machines got €31,482.

By 30 June 2026 the groups had approved 1,326 projects worth €64.5 million under the current programme.

Local

What is open in your county?

Pick a county to see its Local Enterprise Office, what the council itself offers and the next closing date.

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Who can apply

An individual, a company or a community group can apply, for a project in a rural area. For LEADER, rural means everywhere except inside the boundaries of the five main cities.

The project has to fit one of the programme's themes and the local strategy your group has written. For a business the relevant headings are:

  • enterprise development
  • rural tourism and recreation
  • rural food production
  • farm diversification
  • the green economy
  • social, community and co-operative enterprises

You must show you have the matching money, that the project could not go ahead without the grant, and that it will not take trade from a similar business nearby. You must keep operating as funded for five years after the last grant payment.

The rules call the Local Enterprise Office the first stop for anyone starting a business, and the application form warns that enterprise projects may be referred there before they are assessed. So check what your Local Enterprise Office can and cannot fund as well.

What LEADER will not pay for

The operating rules list sectors and costs that cannot be funded. The ones that catch most small businesses are:

  • conventional retail. Community shops, farm shops and outlets selling locally produced goods are the exceptions
  • cars, vans, buses, tractors, diggers, forklifts and trailers
  • working capital, including stock
  • running costs such as wages, overheads and insurance
  • primary farming and horticulture, fishing, fish farming and fish processing
  • childcare, creches, nursing homes, health care and housing
  • a bed and breakfast that is part of your own home, and work on private homes
  • the horse racing and greyhound industries
  • planning application fees, VAT you can reclaim, and the cost of meeting a legal requirement

New machinery and equipment, building work, and fees for architects and engineers of up to 12% of the building cost can be funded.

How to apply, step by step

  1. Contact the Local Action Group for your area, or the local development company that works for it. You can find the group that covers your county on our county pages.
  2. Register an expression of interest. Staff tell you whether the idea is eligible and how a full application will be scored. Some calls are open all year, first come first served. Others are competitive, with a closing date.
  3. Prepare the full application with the group's development officer. There is no fee. The rules ban groups from charging applicants.
  4. The group's evaluation committee assesses the project. The group's members then make the decision and write to you with their reasons.
  5. Sign and return the contract within the time given. The rules suggest 15 working days.
  6. Only now start the project. Pay the bills, then claim the grant with receipted invoices and bank statements. You can ask for up to five phased payments once 20% of the costs have been spent.

Anything started, ordered or paid for before the group receives your signed contract cannot be funded. The rules ban approval after the fact.

What you have to write and send

The standard application form asks for:

  • a description of the project, its costs, and its start and finish dates
  • for a business, how it will earn its income, with a business plan or projected income and spending
  • financial projections for the next five years
  • for a business already trading, accounts for the last three years
  • the jobs the project will create or keep
  • planning permission, or a letter from the council saying none is needed
  • proof you own or lease the property
  • evidence of your matching money, and of how you will pay the bills until the grant comes in
  • details of any other public funding you have had. State aid of this kind is capped at €300,000 over three years

A tax clearance certificate is needed once grant payments pass €10,000 in a year.

How many quotes you need

It depends on how much of the project is paid for with public money.

PurchasePublic funding of 50% or lessPublic funding over 50%
Equipment or services under €5,000One written quoteOne written quote. Three is best practice
Equipment or services, €5,000 to €10,000One written quoteThree written quotes
Equipment or services, €10,000 to €50,000Three written quotesThree written quotes
Equipment or services over €50,000Five written quotes and a public noticeAdvertise on eTenders
Building work under €10,000Two written quotesFive written quotes, or eTenders
Building work, €10,000 to €100,000Three written quotesFive written quotes, or eTenders

All amounts are before VAT. A business offered more than half the cost of its project has to follow the national public procurement rules, which is the right-hand column. Once the group has approved a supplier, do not change it without asking first.

What goes wrong, and appeals

  • Starting early. It makes the cost ineligible.
  • Costs rising after approval. The rules say the grant can never be increased.
  • Paying in cash. Cash payments over €1,000 in total on a project are not eligible.
  • Running out of money mid-project. The grant is paid after you have paid your suppliers, so line up a bridging loan first if you need one. You can ask a credit union about a business loan or talk to your bank.
  • Closing or selling within five years. All or part of the grant has to be repaid.

If the group turns you down, at either stage, you can ask it for a review within 30 days. It must answer within 60 days. If you are still unhappy you have 30 days to appeal to the Department's regional inspector, who also has 60 days to decide.

Budget 2027

Budget 2027 on Tuesday 6 October 2026 could change the money available for LEADER, so check with your Local Action Group before you plan around a figure.

Common questions

Can a shop get LEADER funding?

Usually not. The operating rules exclude conventional retail. The exceptions are community shops, farm shops and outlets selling locally produced goods.

Can I buy a van, a tractor or a digger with a LEADER grant?

No. Cars, vans, buses, tractors, diggers, forklifts and trailers are all on the list of things LEADER cannot fund. New machinery and equipment that is not a vehicle can be funded.

Do I have to pay for everything first?

Yes. The grant is paid on claims backed by paid invoices. You can ask for up to five phased payments once 20% of the costs have been spent, and the group must check before it makes an offer that you have the money or a loan to carry the project.

Is there a fee to apply for LEADER funding?

No. The rules say Local Action Groups are not permitted to charge application fees or other fees. The rules also tell groups to help applicants who need it to prepare an application.

Can a farmer apply?

Not for farming itself. Breeding or keeping livestock, growing crops and milking are excluded. Farm diversification is one of the programme's themes, so a non-farming venture, or processing that adds value after harvest, can be considered. The farmer's own labour can count towards the matching contribution.

How long does a LEADER application take?

No overall timescale is published. It depends on your group's call dates and decision meetings. Where a group gives provisional approval while you wait for planning permission or finish tendering, you get six months to complete those steps.

The LEADER groups, county by county