Company growth is usually associated with obtaining additional sources of financing. In this article we will discuss what EU subsidies are. EU grants represent a profitable financing for a wide group of entrepreneurs.
Under EU programs, entrepreneurs can rely on various types of financing, such as investment loans, loans for working capital, leasing, loan guarantees. In addition, financing supported by the EU is much more convenient, because, unlike other forms of obtaining funds, it requires less collateral or a minimum own contribution, and the interest rate is often lower than in banks and credit organizations when it comes to loans. However, it should be remembered that the financing provided will need to be reimbursed.
EU subsidies are funds from the budget of the European Union to support the SME sector (small and medium enterprises). Support is possible in many areas, for example, in research projects and the introduction of innovations, computerization and e-society, support for environmental decisions, development of the company, export development, training, etc. Currently, there are 5 EU fixed assets supporting the development of all entrepreneurs in the European Union in accordance with the goals of the Europe 2020 strategy, namely:
- European Regional Development Fund - the goal is to reduce differences in the level of regional development and strengthen economic cohesion within the Union. This fund provides support for industrial and infrastructure investments, as well as support for small and medium enterprises.
- European Social Fund - aimed at combating unemployment in EU member states. This fund is intended to assist various regions and social groups, in particular, youth entering the labor market.
- Cohesion Fund - a fund for Member States designed to reduce economic and social inequalities and promote sustainable development, mainly through investment in transport and environmental infrastructure.
- The European Agricultural Fund for Rural Development - the main goal is to support structural changes in agriculture and assist rural development.
- European Maritime and Fisheries Fund - The fund supports the restructuring of the fisheries of Member States.
Project grants do not cover 100% of the costs. Each project has a predetermined amount from which you must cover, for example, 20% of your own contribution. In order for a project to receive a grant, it must have the right to receive this grant. That means it must be a project that meets the requirements and has the right to receive a grant as part of any action of the EU Operational Program. You should also take into account your credit history, as the entities providing support from EU funds in the form of investment loans and loans for return on investment, check the reliability and capabilities of the client. Therefore, you should not rely on the experience of other people with EU grants, since each project has its own rules and criteria for their provision.
The list of available projects and the dates of the next competition can be checked in a special search engine on the website of the European Fund (https://www.funduszeeuropejskie.gov.pl/).