Subsidy for the Enhancement of Business Activities of Firms in the Secondary Sector of the Economy
(I) PURPOSE OF THE SCHEME
The scheme’s purpose is to develop, support and promote the work of firms belonging in the secondary sector of the economy
(II) SUBSIDY AMOUNT
The programme offers a subsidy amounting to 50% of the approved expenditure, up to a subsidy limit of 200,000 euros. The limits for the expenditure that can be approved for the 50% subsidy are detailed below.
|A/A||Expenditure Category||Limits of eligible expenses in each category|
|1.||Building and extension of buildings and facilities.||(a) Up to €400,000
(b) It shouldn’t exceed €750 per sq.m.
|2.||Modification of Buildings||(a) Up to €400,000
(b) It shouldn’t exceed €250 per sq.m.
|3.||New machinery/Equipment||Up to €400,000|
|5.||Acquisition of Quality Certificates||€10,000|
|6.||Marketing – Promotion||€10,000|
|7.||Adviser’s salaries||(a) Market and Product advancement Research (up to €6,000).
(b) Feasibility studies (up to €4,000)
|MAXIMUM EXPENDITURE COVERED||€400,000|
|MAXIMUM SUBSIDY (50% on the eligible expenses)||€200,000|
Applications from companies making a proposal for the use of new technology and of innovative production and promotion methods for their goods and services (e.g. e-commerce) are favoured.
The scheme will be applied from 2014 to 2020.
(III) PROGRAMME ELIGIBILITY – PARTICIPATION REQUIREMENTS
The following may participate in the programme:
- New and existing secondary sector enterprises (e.g. food industries, textile industries etc). Our specialists can provide the analytical list of activities that are covered under the scheme.
- New and existing companies coming under strictly defined economic activities (e.g. production and processing of ice, disassembly process, recycle, car painting etc).
(IV) HOW THE SUBSIDY IS PAID
Public Financing can be provided in three (3) stages, according to the following table.
|Project implementation stages||Requirement||Public financing|
|1st STAGE||Signing the Public Financing Agreement||Advance payment covering up to 40% of the approved state support|
|2nd STAGE||After the implementation and verification of expenses over 30% and 60% of the project.||A subsidy corresponding to the verified eligible expenditure, after deducting any advance payment and provided that the eligible expenditure exceeds the minimum investment amount of €10,000|
|3rd STAGE||After the project’s physical and financial subject-matter has been completed and verified, its objectives have been met and the company has started operating||A subsidy for the remaining eligible expenditure which has been made and verified|
(V) FEASIBILITY STUDY
The preparation of a professional business plan is indispensable in case the total expenses of the project exceed €100,000, whether it is a start-up or an existing business.
In case the expenses are between €50,000 and €100,000, the creation of a feasibility study is still suggested for the reason that it supports the effort to convince the assessing committee for the viability of your business or plan. The assessment of the viability of the company and feasibility of your project constitutes 30% of the total rating points.
Should you have any queries, don’t hesitate to contact us.