Well Done Business > Blog > Grants for companies > EU funds for micro businesses
When you are running or starting a micro-enterprise, support from European funds can effectively accelerate its development. EU Grants is also an opportunity to gain a competitive edge. The 2021-2027 budget is the last chance to take advantage of the offer of support for Polish companies on favorable terms. Read this article to learn how to take advantage of EU funds.
EU funds for micro-enterprises are financial programs that are available to micro, small and medium-sized enterprises (SME sector) in European Union member states. The purpose of these programs is to support the development and competitiveness of small businesses by providing them with financial assistance.
EU funds for microenterprises include various types of activities, such as investment in fixed assets, development of new products or services, activities related to expansion into foreign markets, as well as activities related to innovation.
In order to obtain financial support from EU funds for micro-enterprises, a company must meet certain criteria, such as, among others, having the status of a micro, small or medium-sized enterprise, operating in an EU member country, having an appropriate development project, or meeting other criteria specified in detail in the program regulations.
The procedure for applying for financial support from EU funds for microenterprises is usually quite complicated and requires knowledge of the specifics of a given program.
The purposes for which the subsidies are intended depend on the support program. Examples of activities include: implementation of innovations, support for the purchase of new equipment, implementation of energy-saving technologies, improvement of employees' skills, activities that enable reconstruction of the production line, activities that result in improved products or environmental protection and use of renewable sources. These are selected examples of programs that have been implemented in the past.
Importantly, support can be obtained both for starting a business and for business development. EU grants are easiest to obtain if you are operating in Eastern Poland. Then there are the most opportunities or the value of funding is the highest in percentage terms.
Even before approaching grants, it is worth considering what innovative solutions we could potentially implement in the company. EU grants for the development of the company are often linked precisely to the implementation of innovations.
In addition to grants, there is also support in the form of loans. Particularly attractive are the so-called preferential loans or partially forgiven loans (such as the technology loan offered by BGK).
In the coming years, there will be a great many opportunities to obtain financing for microenterprises. It is worth keeping abreast of information in this regard so as not to miss the opportunity.
You can look to several sources for information on available programs to support business development.
Regional programs are often described at fundseuropejskie.gov.pl ;
The Polish Agency for Enterprise Development (PARP) is also a valuable source of information;
Finally, Polish companies can seek information on how to obtain European funds from local offices (district or provincial offices).
If you want to have a complete and up-to-date picture of all available financing for companies, sign up for our guide available on the website: DostepneDotacje.pl ; Then you will not miss important calls. Importantly, the above-mentioned sources of information, are not all valuable sources. Did you know that grants are also awarded, for example, by entities such as the Visegrad Group? Or have you heard about the Norwegian Funds? Sometimes Polish entrepreneurs can also benefit from them.
Customers often ask us about the availability of a non-refundable loan from the EU. A non-refundable loan from the EU is nothing more than a grant.
In addition to grants, additional funds can also be obtained through EU loans. These are loans with preferential interest rates (symbolic rates) or with the possibility of remission of part of the installments. So, the repayment terms are much more favorable than in the case of ordinary commercial loans.
Examples of this type of financing for companies are regional loans or the BGK technology loan. It's also worth checking out the "Support for Takeoff" program implemented by Bank Gospodarstwa Krajowego.
The procedure for obtaining a grant for a company may vary from region to region or from grant program to grant program, but in general the process of obtaining a grant consists of the following steps:
Identifying a suitable grant program. Before starting the process of obtaining a grant, a company must find a grant program that is suitable for its needs and meets its criteria. Information on subsidy programs is available on the websites of the government, regional institutions or entities such as the NCBiR, ARiMR or NFOŚiGW, among others. Finding the right program is actually the most important and often the most difficult step.
Preparation of the grant application. To obtain a grant, a company must prepare and submit a grant application, which usually consists of an application form and additional documents, such as business plan, cost estimate or other documents specified by the grant program.
Application evaluation. Once an application is submitted, it is evaluated by the relevant institutions. This evaluation is based on the criteria set by the program regulations.
Grant decision: If the application is favorably evaluated, the company receives a grant decision.
Project implementation. After receiving the grant, the company must begin implementation of the project for which the grant is intended. The company must also prepare an appropriate report on the implementation of the project.
Accounting for the grant. At the end of the project, the company must account for the grant by providing reliable evidence of the expenses incurred in connection with the project, as well as confirming that the project was carried out in accordance with the agreed terms.
The time for evaluating the application is indicated in the regulations of the relevant program.
Usually it is from a few weeks even to a few months. In the case of a large number of applications, the recruiting institution reserves the right to extend the deadlines for evaluation. Importantly, often the intake can also be shortened with a large number of applications. It is worth reading the regulations carefully in this regard.
The decision to grant funding is not equivalent to the disbursement of funds. EU grants are often paid as refunds. Sometimes it is possible to receive funds as an advance on costs. It is necessary to find out all the details before the final decision to apply for EU funds.
Polish entrepreneurs who are just starting out in business can benefit from support (funds for business activities). Support is also provided for the development of an already established business (including the development of the business of a company operating in the form of a partnership). The European Union pays special attention to supporting micro, small and medium-sized companies (SME sector).
Companies implementing innovation (more broadly, so-called smart growth) have the greatest chance of receiving support. Optimally, if part of the project is an environmental component or the place of project implementation is Eastern Poland. If you are planning, for example, thermal modernization of the company's buildings (concrete example), the chances of financing are very high.
Entrepreneurs are eligible for both EU grants and other support programs. They have a common goal - to develop a company, whether it is just in the idea stage or already operating. EU funds are available under the 2021-2027 budget (supporting the modern economy).
Can small businesses apply for grants?
Yes, small businesses can apply for grants from various sources, such as government subsidy programs, EU funds, or funds granted by other entities.
Are small business grants only available to certain industries?
Small business grants are available for a variety of industries and sectors, although sometimes they are specifically targeted at businesses in a particular sector, such as agriculture, industry or services.
What documents do I need to submit to apply for a small business grant?
Documentation requirements may vary depending on the source of funding. If the company already exists then financial documents of the company (e.g., balance sheet, income statement) are often required, as well as a business plan or description of the project for which the company wants to use the grant.
Are there any restrictions on the use of grants for small businesses?
Typically, small business grants must be for a specific purpose, such as investment in fixed assets, hiring employees, promotional activities. There are also restrictions on the maximum amount of subsidy that can be received and reporting requirements. Details of the requirements and purpose of the funds are contained in the regulations of the support programs.